Latest news with #RamkrishnaForgings
Business Standard
6 days ago
- Business
- Business Standard
Ramkrishna Forgings consolidated net profit rises 202.27% in the March 2025 quarter
Sales decline 2.75% to Rs 947.21 crore Net profit of Ramkrishna Forgings rose 202.27% to Rs 199.83 crore in the quarter ended March 2025 as against Rs 66.11 crore during the previous quarter ended March 2024. Sales declined 2.75% to Rs 947.21 crore in the quarter ended March 2025 as against Rs 973.96 crore during the previous quarter ended March 2024. For the full year,net profit rose 42.52% to Rs 415.03 crore in the year ended March 2025 as against Rs 291.21 crore during the previous year ended March 2024. Sales rose 8.90% to Rs 4034.11 crore in the year ended March 2025 as against Rs 3704.54 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 947.21973.96 -3 4034.113704.54 9 OPM % 10.3719.27 - 13.8420.85 - PBDT 61.05171.21 -64 418.97654.75 -36 PBT -23.6599.40 PL 147.69397.54 -63 NP 199.8366.11 202 415.03291.21 43
Time of India
29-04-2025
- Business
- Time of India
Ramkrishna Forgings shares fall on disclosure of inventory discrepancies
Mumbai: Ramkrishna Forgings Ltd's shares fell nearly 4.8% on Monday, after the supplier of forged parts for automotive, defence, railways and mining sectors disclosed over the weekend that inventory discrepancies could knock 4-5% off its net worth. The company's promoters on Monday pledged to step in and fund any shortfall, helping cushion the blow. 'Our priority at this moment is to ensure correct assessment of the discrepancies and to take appropriate remedial measures,' managing director Naresh Jalan said on an investor call. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Manila: Surplus Container Homes Available at Unbelievable Prices (See the Deals) LocalPlan Learn More Undo It discovered the discrepancies during the annual fiscal 2025 stock taking, Ramkrishna Forgings said in a filing with stock exchanges on Saturday. The company has engaged independent external agencies for a forensic audit after its audit committee approved a fact-finding exercise. Analysts estimate its net worth at around Rs3,000 crore. This would mean a notional impact of around Rs150 crore. Analysts said it could go up further. Calling this the first such incident in its history, Ramkrishna Forgings said it would account for any financial hit on a one-time basis once the external audit concludes. Live Events The company's shares fell to Rs625.05 on the BSE Monday, when the benchmark Sensex ended about 1.3% higher. Jalan said he 'takes moral responsibility' for what has happened and will ensure the promoters live up to the expectations of the investor community and best corporate governance practice. 'We are fully cognisant of any actions and recommendations by the reputed agencies and, as approved by the board, may have implications on the net worth of the company,' he told investors. In response to a question on the need for a fund infusion by the promoters, Jalan said it is being done with a 'single-minded focus of enhancing the financial position of the company. This infusion will also provide additional liquidity to the company and strengthen its leverage position,' he said. The company runs 18 manufacturing plants in India with a total capacity of 3,06,000 metric tonnes. Tata Motors is its largest customer, with medium and heavy commercial vehicles contributing the bulk of revenues. In FY2024, Ramkrishna Forgings made a spate of acquisitions to diversify into new segments like passenger vehicles, tractors, and light commercial vehicles. As the cause of the error, its magnitude and impact on profit and loss is not known yet, there is uncertainty on the overall impact on financials, DAM Capital analyst Mitul Shah wrote in a research note. 'The details from an independent auditor are most critical in this scenario. Therefore, we would await the outcome of the independent auditor's report and auditors' remark for better clarity, before taking any concrete view,' Shah wrote, placing his rating of the stock 'under review'.
Business Standard
28-04-2025
- Business
- Business Standard
Ramkrishna Forgings drops after discrepancies found in inventory audit
Ramkrishna Forgings dropped 4.75% to Rs 625.05 after the auto component manufacturer discovered discrepancies in its inventory during an internal audit. The stock hit a 52-week low of Rs 579 today and is down 17.8% over the past year. According to the companys internal estimates, the discrepancies are expected to have an adverse impact amounting to 4% to 5% of the company's net worth, as stated in a regulatory filing on Saturday, 26 April 2025. The company explained, "During the course of Annual Physical Verification of Inventory undertaken by the company for the Financial Year ended 31 March, 2025, which commenced from 6 April, 2025, it was observed that there have been discrepancies in certain cases of inventory." In response, the companys Audit Committee made the decision to appoint independent external agencies to ensure "transparency, accountability, and adherence to the highest standards of Corporate Governance" and to prevent similar issues in the future. Ramkrishna Forgings further clarified, "On the basis of the final joint report by the independent external agencies, the company will appropriately account the impact in its financial statements on a one-time basis." The company emphasized that this incident was a first-ever occurrence in its history. The promoters of the company, acknowledging the potential adverse impact on the companys net worth, expressed their commitment to protecting stakeholder interests and maintaining the highest corporate governance standards. To mitigate the assessed impact upon completion of the fact-finding study, the Promoters have assured investors that they will fund the impact through permissible instruments under applicable laws, the Kolkata-based company added. Ramkrishna Forgings is primarily engaged in manufacturing and sale of forged components of automobiles, railway wagons & coach and engineering parts. On a consolidated basis, net profit of Ramkrishna Forgings rose 14.68% to Rs 99.61 crore while net sales rose 7.85% to Rs 1073.78 crore in Q3 December 2024 over Q3 December 2023.
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Business Standard
28-04-2025
- Business
- Business Standard
Ramkrishna Forgings plunges 12%, at 52-wk low on heavy volumes; here's why
Ramkrishna Forgings share price today: Shares of Ramkrishna Forgings (RK Forgings) plunged 12 per cent to hit a 52-week low of ₹579 on the BSE in Monday's intra-day trade after the company identified discrepancies in certain inventory cases, during the ongoing physical verification of inventory for the financial year ended March 31, 2025. This is the first ever incident of its kind in the history of the company. The stock price of the auto components & equipment company has fallen below its previous low of ₹ 604.50 touched on March 3, 2025. In the past two days, the stock has slipped 16 per cent, while it has plunged 33 per cent from its previous month high of ₹862.05 touched on March 24, 2025. The stock had hit a 52-week high of ₹1,064 on October 15, 2024. At 11:19 AM, RK Forgings was quoting 6 per cent lower at ₹614.10, as compared to the 0.88 per cent rise in the BSE Sensex. The average trading volumes on the counter rose nearly four-fold today. A combined 4.5 million equity shares have changed hands on the NSE and BSE. During the course of Annual Physical Verification of Inventory undertaken by the Company for the financial year ended 31 March, 2025, which commenced from 6 April, 2025, it was observed that there have been discrepancies in certain cases of inventory; RK Forgings said in an exchange filing. While the Physical Verification process is continuing, as per the internal estimates of the company, a likely adverse impact of the order of 4 per cent to 5 per cent of the net worth of the company is indicated. On the basis of the final joint report by the Independent External Agencies, the Company will appropriately account the impact in its Financial Statements on a one-time basis. The Promoters of RK Forgings, understanding the potential adverse impact that may arise pursuant to the fact-finding study, on the net worth of the company, stand firmly committed to protect and preserve the stakeholders' interest to uphold the highest standards of Corporate Governance, it stated in the exchange filing. It was further noted that this is the first ever incident of its kind in the history of the Company, RK Forgings said in a statement. Further, in order to mitigate the potential adverse impact assessed upon conclusion of the fact-finding study, the Promoters are giving an assurance to the investors that they intend to fund the same through permissible instruments as permitted under applicable laws, the company said. Appointment of independent external agencies for a joint fact-finding study The Audit Committee Meeting of RK Forgings at its meeting held on Saturday, April 26, 2025, has approved the appointment of reputed Independent External Agencies to conduct a joint fact-finding study for the discrepancy in inventory and reasons thereof. The decision to make the aforesaid appointment has been taken by the Audit Committee in the interest of ensuring transparency, accountability and adherence to the highest standards of Corporate Governance and to mitigate future recurrence of such nature, RK Forgings said. Brokerage view – ICICI Securities RK Forgings anticipates a likely adverse impact of 4 per cent to 5 per cent of its net worth amounting to ~₹150 crore, due to these discrepancies, and the final impact will be accounted for in the financial statements on a one-time basis after the external agencies' report is received. In order to mitigate the adverse impact, the promoters are giving an assurance that they intend to fund the same through permissible instruments. This is sentimentally negative for the company. 9MFY25 financial performance RK Forgings' growth momentum continued in the first nine months (April to December 2025) of the financial year 2024-25 (9MFY25) with the consolidated revenue increasing to ₹3,086.9 crore from ₹2,932 crore in 9MFY24. The growth was mainly driven by a strong order book for both domestic as well as export orders, and a strong performance despite an industry-wide slowdown in the domestic medium and heavy commercial vehicle (MHCV) market and muted exports. Revenue and volumetric growth were supported by new product launches, and the increasing content per vehicle as well as wallet share with new and existing customers. India Ratings and Research (Ind-Ra) expects the consolidated revenue to have grown further to ₹4,100 crore-4,200 crore in FY25 and to increase to ₹4,500-4,600 crore in FY26, driven by a modest recovery likely in the domestic commercial vehicles (CVs) industry, incremental revenue from the acquired entities and the ramping up of increased capacities. The agency expects the credit metrics to improve in FY26, mainly due to a moderate capex plan, improving profitability and ramping up of operations in new businesses/ capacities leasing. The maintenance of the credit metrics in FY26 will remain a key monitorable due to the capital-intensive nature of the business and ongoing acquisitions. Ind-Ra believes the company's business profile will improve over the next two-to-three years due to a further diversification in the revenue base, synergies from the manufacturing capacities and cross-selling opportunities to marquee clientele. The agency will monitor the company's ability to scale up these businesses. The turnaround of these businesses remains a key rating monitorable, the rating agency said in its rationale dated April 15, 2025. About Ramkrishna Forgings RK Forgings manufactures forged and computer numerical control machined components for the automobile, railways, defence and mining sectors. It manufactures components for transmission and axles including shafts, gear box, crown wheel, pinion, spindles and bearing rings for the auto sector. RK Forgings has eighteen manufacturing facilities in India and has a total standalone installed capacity of 268,400 metric tonnes, and a consolidated installed capacity of 306,000 metric tonnes.
Mint
28-04-2025
- Automotive
- Mint
Ramkrishna Forgings share price tumbles 12% to fresh 52-week low. What's behind the fall in this BSE 500 stock?
Stock market today: Shares of Ramkrishna Forgings, an auto components and equipment manufacturer, cracked nearly 12% on Monday, April 28, to hit a fresh 52-week low after the company flagged discrepancies in its inventory. The company said that during the physical verification of inventory undertaken by the company for the financial year ended March 31, 2025 (FY25), which commenced from 6 April, 2025, it was observed that there have been discrepancies in certain cases of inventory. According to the internal estimates of Ramkrishna Forgings, there will likely be an adverse impact of 4%-5% on the net worth of the company, it said in an exchange filing over the weekend. In order to mitigate the adverse impact of the discrepancies in the inventory, the company's Audit Committee Meeting, on Saturday, April 26, approved the appointment of Independent External Agencies to conduct a joint fact-finding study for the discrepancy in inventory and reasons thereof. 'The decision to make the aforesaid appointment has been taken by the Audit Committee in the interest of ensuring transparency, accountability and adherence to the highest standards of Corporate Governance and to mitigate future recurrence of such nature,' Ramkrishna Forgings said in a filing. The promoters also affirmed their support for the company and said they are firmly committed to protecting and preserving the stakeholders' interests to uphold the highest standards of Corporate Governance. Further, in order to mitigate the potential adverse impact assessed upon conclusion of the factfinding study, the promoters are giving an assurance to the investors that they intend to fund the same through permissible instruments as permitted under applicable laws, the release said. Ramkrishna Forgings share price witnessed a gap-down start following the disclosures made by the company over the weekend. The BSE 500 stock, with a market capitalisation of 10,860 crore, opened 12% lower against its previous closing price at ₹ 579. This is also the 52-week low price that Ramkrishna Forgings shares hit today. As of 10.42 am, Ramkrishna Forgings stock recouped some losses and was trading at ₹ 600.15 apiece, down 8.55%, on the BSE. Anshul Jain, Head of Research at Lakshmishree Investments, said that after a buying climax, the stock has corrected 43% and is now forming an 8-week base between 850 and 600. However, the absence of institutional accumulation suggests a higher probability of a breakdown, he added. "A decisive breach below 600 could lead to a sharp fall towards 540. On the contrary, if a bear trap develops around 600, the stock could continue to consolidate within the 600–850 range for a few more weeks before a decisive move," Jain said. Meanwhile, Riyank Arora, Technical Analyst at Mehta Equities, said Ramkrishna Forgings is currently trading near ₹ 605, with a critical support level placed at ₹ 580. 'A decisive break below this support could trigger a sharp downward move, indicating growing bearish sentiment. Alternatively, the stock faces resistance at ₹ 630– ₹ 635; a sustained move above this zone could shift the short-term trend back in favour of the bulls. At present, the stock remains in a neutral to cautious territory, and traders should closely track the price action around these key levels,' Arora added.
