Ramkrishna Forgings secures LOI worth Rs 22.5 crore from Mexican Axle Manufacturer

On Tuesday, Ramkrishna Forgings Limited, one of the leading suppliers of rolled, forged, and machined products announced that it has received a Letter of Intent (LOI) worth Rs 225 Million or USD 3 million per annum from a Major Tier 1 Axle Manufacturer in Mexico for manufacturing of front axle beam. 

Commenting on the order win Lalit Khetan, Executive Director & CFO at Ramkrishna Forgings stated that the notable addition of a major part in the Front Axle will help the company in strengthening its exports revenue growth and improve content per vehicle. He added that the company will continue to explore new geographies with potential for expansion to broaden its reach and sustain growth in the exports business. 

Ramkrishna Forgings Limited reported better than expected revenue and operating profit in Q2FY22, with Revenue, PBIDT (Ex OI), and PAT growing 38.77 per cent QoQ, 36.84 per cent QoQ, and 78.44 per cent QoQ. The company witnessing demand across geographies, product portfolio, and clients, driven by strengthening business with existing clients, acquisition of new clients, and foray into new segments. 

Headquartered at Kolkata, Ramkrishna Forgings has state-of-the-art manufacturing facilities at Jamshedpur along with offices at Detroit in the USA, Toluca, and Monterrey in Mexico, Istanbul in Turkey having warehousing facilities at Hagerstown, Louisville, Detroit in the USA, Toluca, Monterrey in Mexico, and Westerlo in Belgium. 

Over the years, the company increased its forging and die-making capacities and added machining and heat treatment facilities, including isothermal annealing, which enabled it to undertake manufacturing of components for OEMs and Tier 1 companies. 

On Tuesday, the stock closed at Rs 947.55, up by 1.40 per cent or Rs 13.05 per share on BSE. The 52-week high of the scrip is recorded at Rs 1,259.60 and the 52-week low at Rs 469.40 on the BSE.