Ramkrishna Forgings jumps on bagging order

Ramkrishna Forgings jumped 4.75% to Rs 977.25 after the company said it bagged a letter of intent (LoI) for its warm forging business worth Rs 12 crore per annum from a major global axle manufacturer located in India.

This is a recurring order on annual basis and has potential to grow in coming years, the company said in a statement.

Commenting on the order win Naresh Jalan, managing director, Ramkrishna Forgings, said: "Coming from a major global axle manufacturer this order is not only a testimony to our sound and timely investment decision ability, but also our prowess to win back-to-back sales orders.

This order is for a new pressline which is part of our capex program initiated in 2018. The awarding of this order also opens doors to future business potential from this warm forging pressline. This order being recurring in nature will improve revenue visibility further."

Separately, the company said that its board approved raising upto Rs 500 crore either by issuance of equity shares, and/or bonds.

The board of directors has approved to convene the 39th annual general meeting (AGM) of the company on Saturday, 25 September 2021, to seek approval of the shareholders of the company for the aforesaid fund-raising.

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

The company reported a consolidated net profit of Rs 24.69 crore in Q1 FY22 as against a net loss of Rs 29.48 crore in Q1 FY21. Net sales during the quarter increased by 267.11% YoY to Rs 417.11 crore.

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