Ramkrishna Forgings' net profit drops 18% during Q4FY23

Ramkrishna Forgings registered an 18% drop in consolidated net profit to Rs 68.45 crore during Q4FY23, as against  Rs 83.93 crore in the same period last year. However, revenue from the operation grew 31%  during the quarter under review to Rs 194 during Q4FY23 when compared to Rs 147.68 crore. 

On an annual basis, during FY23, the company's net profit grew 14% to Rs 235.59 crore, while its revenues saw an increase of 31% to Rs 3001 crore.

The forging capacity of the company will be augmented by 56,300 tons by the addition of a warm forging press, upset forgings, and a 6000-ton press line. The capacities for the warm forgings and new technology totaling 18,200 tons  is expected to be commissioned by June 2023, and the hot forging capacity of 38,100 tons will be commissioned by September 2023, the company informed investors in its presentation.

Naresh Jalan, Managing Director, Ramkrishna Forgings said, "Our strategy to expand our product offering in conjunction with the high customer demand has led to a 31% year-on-year increase in revenues for this fiscal year. Our global geographical outreach has enabled us to secure new orders and strengthen our order book."  As of March 31, 2023, the company claims to have successfully reduced its gross debt by 21%, and it currently stands at Rs 1241 crore.