Ramkrishna Forging posts healthy set of Q4FY22 numbersRKFORGE - 208 Change: 3.90 (1.91 %)
News: Ramkrishna Forging posted healthy numbers with topline for the quarter coming in at Rs 719 crore up 20% QoQ. Total tonnage come in at 32,038 tonnes, up 9% QoQ. Consequently, EBITDA & EBITDA margins were at Rs147.6 crore & 20.5%, respectively. PAT for the quarter was at Rs 83.9 crore, up 83% QoQ (supported by tax credits; reversal of deferred tax liabilities of ~Rs25.3 crore). The management also guided for ~20-25% growth in topline for FY23.
Views: Ramkrishna closed the year on a positive note with top line surpassing our estimates amid strong order book and new order wins. Margins came on marginally lower side tracking higher raw material prices & higher other expense which were up 230 bps, 210 bps QoQ, respectively, partially offset by savings realised under power & fuel cost. Encouragingly, however EBITDA/tonne was at ~Rs 46,000/tonne vs. ~Rs 48,000 clocked in Q3FY22. Due to adverse working capital cycle (absolute as well as no. of days), debt on the books increased by ~Rs 370 crore with consequent Debt: Equity at 1.6x as of FY22.