Thread by @TYMFinance

Ramkrishna Forgings conducted the conference call for Q3 FY22 yestarday

Here are the key concall highlights:
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Business Update:

• Received contracts worth Rs 220cr from 6 contracts across various geographies & business verticals
• New business acquisition in Front Axle Beams
• Open new offices in SA, Russia & 2 in Europe, with focus to increase exports
• Previous order are fulfilled.

• Within next year, mgmt target that all the unit of RFL will 4.0 compliant, which will ensure increase in plant efficiency & increasing margins.
• Mgmt expect current margins to be sustainable for new few quarter.
• Mgmt target to net debt free by FY25.

MOU with ePropelled:

• Signed MOU with ePropelled, to manufacture their patented Dynamic Torque Switching (eDTS) which will provide innovative energy saving solution for the high-growth eMobility market.
• Exposure of EV is 0.8 % of Balance Sheet, hence this wont impact.

Revenue Mix:

• Non Auto sales is expected to pick up FY22, as most of the product is send for sample.
• Railways market is opening up and as COVID goes up, mgmt expect growth rate to be double comparing to FY21.
• North America should biggest portion, with Europe coming close

Export:

• Export realization is maintain with respect to last quarter. (2,27,000 Rs per tonne).
• Co. has closed the above the export target guidance made previously.
• Mgmt expect North America volume growth to remain similar than that of FY21.
• Russia is new market open.

Capacity:

• Mgmt plan for capex if 75 cr for FY22 for maintaining CAPEX.
• No plan of adding capacity for fulling order.
• Mgmt will focus on increasing plant efficiency and increasing utilization
• With increase in fabrication sale next year utilization expected to increase

Other:

• Because of supply chain issue & semiconductor issue, there is increase in inventory. Some of inventory was liquidated in Q3 & Q4 may see good reduction.
• Tax: For FY22 & 23 MAT credit will be utilized fully and in 24-25 tax rate would be 25%.