Ramkrishna Forgings shines post credit rating upgrade

Ramkrishna Forgings informed the bourses that independent credit rating agency ICRA has notch up its credit rating for the long-term and short-term.  

The Company’s long-term rating has been revised by ICRA from A- (Positive outlook) to A (Stable Outlook) and the short-term rating has been revised from A2+(A two plus) to A1 (A one).  

This credit upgradation was done after taking into consideration a higher than expected improvement in company’s sales and cash flow in the last quarter of fiscal year 2018. Sales in Q4FY18 were up by almost 57 per cent to Rs. 440 crore when compared to the corresponding quarter of last year. This was due to strong traction in domestic medium & heavy commercial vehicle segment.  

Further, company’s expansion plan includes setting up a new machine line is likely to result in higher sales from press lines and improve its contribution margin which in turn will improve the company's RoCE.  

With this positive development, the company’s stock on Wednesday gained almost 7 per cent to touch an intra-day high of Rs. 651.7 per share. At 13:03 hours, the stock was trading at Rs. 648 per share, up by 6.4 per cent from its previous close of Rs. 609.