- 25 Oct 2022
- ICICIdirect Research
Ramkrishna Forging reports robust performance in Q2FY23RKFORGE - 278 Change: 6.30 (2.32 %)
Consolidated sales for Q2FY23 were at Rs 824 crore, up 18% QoQ with EBITDA coming in at Rs175 crore up 17% QoQ with margins at 21.3%, down 10 bps QoQ. Consequently, PAT was at Rs 67 crore, up 31% QoQ. Total tonnage for the quarter came in at 32,180 tonne, up 6% QoQ while EBITDA/tonne came in at all-time high at Rs54,490/tonne vs. Rs49,169/tonne in Q1FY23. CFO generation remained strong in H1FY23 at Rs 360 crore with utilisation of same towards capex and debt reduction pegged at ~Rs 160 crore and ~Rs 200 crore, respectively.
The quarterly performance came in much ahead of our expectations. Positive surprise was sequential uptick in net realisations amidst ~30% QoQ growth in export revenues (constitute ~40% of sales) as well as robust cash flow generation. The consistent export order wins for the company bodes well for industry leading growth going forward. Key monitorables for the company are sustenance of this quarterly sales and EBITDA/tonne run-rate as well as total growth capex outlay, which was contrary to its earlier guidance.