Ramkrishna Forgings (RKFORGE) Q4 24/25 earnings summary

Executive summary

• FY25 consolidated revenue grew 9% year-over-year to INR 4,034 crore, with significant new order wins totaling INR 4,600 crore across auto, non-auto, and railways.

• Major capacity additions included 25,000 tons cold forging and 14,250 tons hot/warm forging, bringing total to 268,400 metric tons.

• PAT for FY25 rose 17% year-over-year to INR 332 crore, aided by deferred tax credit from the ACIL merger and exceptional gains from asset sales.

• NCLT approved the merger of ACIL, with further business simplification underway.

• Audited results received a qualified opinion due to inventory discrepancies, with management asserting no further significant impact expected.

Financial highlights

• Q4 consolidated revenue at INR 947 crore, down 3% YoY; Q4 EBITDA at INR 99 crore, down from INR 188 crore YoY.

• FY25 consolidated revenue at INR 4,034 crore, up 9% YoY; full-year EBITDA at INR 560 crore (vs. INR 770 crore in FY24); PAT at INR 332 crore (vs. INR 283 crore in FY24).

• Standalone revenue for FY25 increased 4% YoY to INR 3,63,430 lakhs; standalone PAT up 47% YoY to INR 27,405 lakhs.

• Dividend payout for FY25 was 10.9% of PAT; interim dividend of Re. 1.00 per share declared.

• Exceptional gain of INR 102.87 crore on sale of subsidiary recognized.

Outlook and guidance

• Revenue growth guidance of 15-20% for FY26 remains intact, with normalization expected as new orders ramp up.

• Aspirational EBITDA margin target of 24-25% by FY2028 is maintained.

• Operations at the new rail wheel plant expected to begin by Jan'26, targeting 228,000 forged wheels annually.

• Focus on expanding global presence, EV business, and non-automotive diversification.

• Management does not expect further significant financial impact from the ongoing inventory investigation.