Ramkrishna Forgings sees Q1 net profit grow by 63% to Rs 77 crore

Ramkrishna Forgings Ltd on Sunday reported a 63 per cent jump in its net profit at Rs 76.97 crore during the June quarter, on account of higher income.

It had clocked Rs 47.26 crore net profit in the April June period of the preceding 2022-23 fiscal, Ramkrishna Forgings said in a statement.

The company's total income also rose to Rs 835.95 crore from Rs 650.75 crore in the year-ago quarter, posting a rise of 28 per cent.

Naresh Jalan, Managing Director, Ramkrishna Forgings Limited said: "We are actively working towards reducing our debt burden, targeting a debt to EBITDA level of 1:1 by FY 2024-25. This will strengthen our financial position, reduce risks, and provide us with flexibility to pursue growth opportunities."

Further, the company through automation and artificial intelligence, is in process of enhancing operational efficiency, increase productivity, and address evolving customer demands, he said.

On market risks, he said the company closely monitors macroeconomic risks, proactively mitigating them by prioritizing customer relationships and delivering excellent service.

Our strategic focus revolves around preparing for improved market conditions, ensuring that we are well-prepared to seize opportunities," Jalan said.

During the quarter, the company renewed the long term contract with additional new product range with "overseas Tier 1 customer" based in North America and also received an order worth 4.5 million euros from a prominent European railway passenger coach manufacturer.

In March, Ramkrishna Forgings in consortium with Titagarh Rail Systems Ltd, emerged as the lowest bidder for the supply of 15.40 lakh forged wheels to Indian Railways.

The JV namely Ramkrishna Titagarh Wheels Ltd. will be engaged in manufacturing and supply of forged wheels under the Atmanirbhar Bharat initiative.

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.