Ramkrishna Forgings PAT in Q2 at Rs 64 cr on account of higher revenues

Ramkrishna Forgings has reported 27 per cent growth in profit after tax (PAT) at Rs 64 crore for September quarter 2022-23 on account of higher revenues.

It had clocked Rs 50.11 crore profit in July-September period a year ago, the company said in a statement on Wednesday.

During the quarter under review, revenue rose to Rs 762.55 crore from Rs 578.93 crore in the year-ago period.

In the first half (April-September) of the ongoing financial year, its PAT was Rs 111.20 crore, 48.81 per cent higher from Rs 74.72 crore in the year-ago period.

In the six-month period, sales volume was 41,257 tonne, up 47.17 per cent over the year-ago period.

Overall capacity utilization was 82.24 per cent for the second quarter of 2022-23.

"Our robust and diverse business model has yielded sustained growth momentum because of improved product mix and strong customer demand, our operating revenue increased by 31.72 per cent year-on-year. Improved capacity utilization led to operating leverage resulting in margin expansion," Naresh Jalan, Managing Director, Ramkrishna Forgings said.

According to him, the company will also raise around Rs 100 crore through preferential issue of convertible warrants. The proceeds will be utilised towards reduction of debt.

As on September 30, 2022, the gross debt on the company was Rs 1,319.25. crore.

"We will continue our focus on reducing debt in order to become net debt free by FY25," he said.

Kolkata-based Ramkrishna Forgings is a manufacturer and supplier of closed die forgings of carbon and alloy steel, micro alloy steel and stainless steel forgings.