Ramkrishna Forgings Q3 net profit rises to Rs 87 crore

Ramkrishna Forgings Ltd on Thursday posted a 43% rise in consolidated net profit to Rs 86.86 crore during the December quarter on the back of higher income. The company had posted a net profit of Rs 61.04 crore in the year-ago period, the company said in an exchange filing.

The company's total income in the third quarter of the current fiscal also rose to Rs 1,059.32 crore from Rs 778.22 crore in the year-ago quarter.

Its expenses were at Rs 941.84 crore, up from Rs 684.70 crore a year ago.

"The company registered a strong performance across segments and geographies, with year-on-year growth of 20% in revenues and 43% in profitability. EBITDA margins stood at 23%, driven by operating leverage and a sharp focus on cost control," Ramkrishna Forgings Ltd Managing Director Naresh Jalan said in a statement.

The company raised Rs 1,000 crore through the QIP route during the quarter, he said.

"The recent approval by NCLT Delhi for the acquisition of ACIL Ltd aligns with our strategies, positioning us for a healthy and robust expansion in the next phase," he said.

In the October-December period, the sales volume was 28,263 tonnes, a year-on-year increase of 35.6%.

In the April-December period, sales volume was 76,277 MT, representing a year-on-year increase of 22.8% over the same period in the previous fiscal.

Kolkata-based Ramkrishna Forgings is a leading manufacturer of forged metal products with an annual installed capacity of 210,900 metric tonnes.

It manufactures and supplies forgings of carbon and alloy steel, micro alloy steel and stainless steel to sectors like railways, bearings, oil and gas, power and construction, automotive among others.