Auto component major Ramkrishna Forgings, received new orders worth Rs 710 crore in Q4FY25 with the program life being four years. About 74% of the new order wins are from the automotive segment while 23% coming from non-automotive segment in line with the diversification strategy, the company informed in a post result call with the analysts.
“RKFL is looking at the next level of growth coming in from the passenger car segment with a revenue stream starting from FY27” a company top executive said. Out of the total Rs 524 crore is from the auto segment while rest from non-auto side. Within the automotive segment, Rs 463 crore is from CV segment, out of which Rs 335 crore is for exports and Rs 128 crore for domestic. In the PV segment which has an orderbook of worth Rs 61 crore is the contribution from PV, all of which is for exports.
For Indian railways, the company has received orders to supply fully assembled bogie frames. “It will thus be able to demonstrate the full potential for the fabrication business – The natural progression from individual frames to bolsters and finally full assemblies is complete” Ramkrishna Forgings investor presentation stated.
Update on Mexico Facility
Ramkrishna Forgings Limited has acquired a company in Mexico as Ramkrishna Forgings Mexico S.A. de C.V. The Company has taken a factory space on lease at Monterrey, Mexico, and has already commenced its machining operations along with storage. Current Machining is done on Machines supplied by a North American customer on Forgings also supplied by them. Further the company has also received orders for machining from a North America-based customer. “Discussions are on for the existing portfolio as we are facing strong traction for requirements from Mexico” the company management informed.
Ramkrishna Forgings is into manufacturing of forged and computer numerical control machined components for the various sectors including automobile, railways, defence and mining sectors. In the automotive sector, the company supplies components such as transmission, and axles including gear box, pinion, spindles, bearing rings, shafts, crown wheel among others. The company boasts of around 18 manufacturing plants in the country, with a total consolidated installed capacity of 3,06,000 metric tonnes. The company’s major revenue generation happens from the medium and heavy commercial vehicles sector, with Tata Motors being its largest customer.