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Ramkrishna Forgings Ltd.

BSE: 532527 Sector: Engineering
NSE: RKFORGE ISIN Code: INE399G01015
BSE 00:00 | 21 Jan 997.55 -30.55
(-2.97%)
OPEN

1021.95

HIGH

1021.95

LOW

978.05

NSE 00:00 | 21 Jan 999.90 -29.35
(-2.85%)
OPEN

1020.00

HIGH

1023.00

LOW

978.00

OPEN 1021.95
PREVIOUS CLOSE 1028.10
VOLUME 16972
52-Week high 1259.60
52-Week low 484.85
P/E 20.55
Mkt Cap.(Rs cr) 3,195
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1021.95
CLOSE 1028.10
VOLUME 16972
52-Week high 1259.60
52-Week low 484.85
P/E 20.55
Mkt Cap.(Rs cr) 3,195
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Ramkrishna Forgings Ltd. (RKFORGE) - Chairman Speech

Company chairman speech

RAMKRISHNA FORGINGS LIMITED ANNUAL REPORT 2007-2008 CHAIRMAN'S REPORT Dear Shareholders, 2007-08 was eventful for us, as it brought both successes and unforeseen challenges. I am happy to report that your Company has been able to leverage the successes to offset the perils and produce sustainable gains: we posted a Rs. 236-crore turnover as on March 31, 2008. Performance would have been better but for the ring rolling facilities not stabilizing in the expected time however, your Company should earn a full year's benefits in 2008-09. and targets to achieve a growth rate of more than 50 percent for the financial year 2008-09. We expect to hit it, having provided for the looming recessionary trends, on the strength of the various measures undertaken during the year, which are as follows: Improved Efficiencies: Many cost reduction initiatives have been taken which will help to conserve energy and furnace oil and expected to yield substantial cost savings . The Company is also planning to implement Total Quality Management (TQM) and Total Productive Maintenance (TPM) which will improve equipment performance, production efficiency and timely delivery of service and products. Industry: The commercial vehicle sector recorded a 3.1 percent growth over 2007-08 driven primarily by an increase in light commercial vehicles. However, inflation and interest rates have created significant pressure. Ramkrishna Forgings, in order to mitigate the slowdown in the industry, has diversified its customer base and increased its thrust on exports. The advent of our ring rolling facility has already increased our roster of international customers and will help the Company realise improved margins. The industry is also facing several hurdles in the form of steel and oil price increases which adversely impacted input costs. The Company is taking all-round measures to improve efficiencies productivity to control costs. With an expected CAGR of 20.4 percent over the next five years, the outlook for the industry is extremely upbeat. Competitive edge: The stabilisation of the ring rolling line will provide the Company with a competitive edge on account of higher productivity, better yield of raw materials and better quality of the components. The installed gear cutting and testing facilities of the Company are of superior technology. The Company also boasts one of the few completely automated plants in the country which improves product quality while reducing labour costs. Additionally, it is one of the few approved suppliers to Indian Railways, providing critical safety items. Increasing the capacity of machining facilities and improving efficiencies is our current focus. Outlook: The main focus of the Company will be to consolidate the expansion undertaken and provide the necessary balancing equipments to improve upon the efficiencies and utilise the existing capacities more efficiently. In this aspect the Company will be installing new cnc shaving, shaping and hobbing machines in the machining section which will not only enhance our machining capabilities but will allow us to balance out our existing heat treatment capacity. Similarly in the ring rolling division the Company will install more machining centres to enhance the machining capacities, drilling machines to improve efficiencies and a billet cutting machine to augment our raw material cutting facilities With all new inputs in place, I have every confidence that Ramkrishna Forgings will record a superior performance at the end of the current year. Warm regards, Mahabir Prasad Jalan Chairman
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