Ramkrishna Forging Q3 Results Review - Healthy Growth Prospects, Inexpensive Valuations: ICICI Direct

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Forged auto parts inside Ramkrishna Forgings Ltd. plant. (Source: Company website)

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ICICI Direct Report

Ramkrishna Forging Ltd. reported a steady performance in Q3 FY23. On a consolidated basis, net sales for the quarter were at Rs 778 crore, down 6% QoQ. Total tonnage come in at 33,390 tonnes, up 3.8% QoQ.

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Ebitda for Q3 FY23 was at Rs 173 crore with corresponding Ebitda margins at 22.2%, up 100 basis points QoQ, primarily tracking gross margin expansion, which was up 240 bps QoQ.

Ebitda/tonne for the quarter came in at ~Rs 51,800/tonne in Q3 FY23 versus ~Rs 54500/tonne in Q2 FY23.

Ramkrishna Forging's profit after tax in Q3 FY23 was at Rs 61 crore, down 9% QoQ (lower tax rate Q2 FY23).

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