Ramkrishna Forgings eyes 20% revenue growth in FY25, says CFO | Autocar Professional


Ramkrishna Forgings, a Kolkata-based auto ancillary, saw a 24% increase in topline in FY24 at Rs 3,955 crore and anticipates sustaining this growth momentum, with a further 15%–20% rise projected for FY25. 

According to Lalit Kumar Khetan – Executive Director and Chief Financial Officer, a significant rebound in domestic volumes as well as the increasing demand for forging equipment from the non-automotive segments, viz: railways, oil and gas, and mining and earthmoving, are propelling the company’s growth.

“Our timely capacity expansions, diversified product mix, foraying into exports, strategic acquisitions, and joint ventures are expected to pole-vault the growth trajectory for the company over the next few years,” he said during a quarterly call. 

The company supplies to OEMs like TATA Motors, Ashok Leyland, VE Commercial Vehicles, and Daimler in India and to Volvo, Mack Trucks, Iveco, DAF, Scania, MAN, UD Trucks and Ford Otosan in the overseas markets, aims to sustain EBITDA margins at higher levels and aspires for an over 25% EBITDA margin in the medium to long term. 

Post attaining robust capabilities in the commercial vehicle (CV) segment, Jalan disclosed that it is poised to expand its presence in passenger vehicles and other non-automotive segments. Notably, Ramkrishna Forgings caters to 70% of the forging requirements in the CV domain. Currently, the light vehicle segment exposure of the company stands at 2%, and in the coming years, it is expected to increase to double-digits, Jalan added.  

Additionally, the company’s overseas business has been showing an upward trend as the export mix has improved from 30.1% in FY19 to over 41% in FY24. The company’s management is upbeat about achieving a 50% sales volume share from the export business in the next three years, on the back of significant order wins from Europe and North America. 

In Q4 FY24, the metal forging maker secured a contract worth USD 220 million to penetrate the North American market. As per the company’s statement, the contract spans over a decade, and marks the company’s foray into a new vertical within the forging sector, focusing on supplying Tier 1 customers in the light vehicle segment across North America.

Ramkrishna Forgings also plans to invest Rs 500 crore as capex in FY25, to execute its expansion plans, which include acquisitions and upgrades of acquired entities. In July 2023, Ramkrishna Forgings acquired Multitech Auto Private Ltd and its wholly-owned subsidiary, Mal Metalliks with a capacity to manufacture 21,600 mt per annum of machined SG & CI castings for Rs 203 crore. In the same year, it also acquired JMT Auto Ltd, an Amtek Auto group company.

This will allow the company to have fresh capacity and a healthy order book for future growth. With an installed capacity of 210,900 metric tons and over 2000 products, Ramkrishna Forgings serves 22 countries and claims to be the second-largest forging player in the domestic market. 


US automakers just can’t seem to make up their minds about EVs. Last fall, GM…

Mercedes-Benz USA is introducing options for its 2025 eSprinter van that include an 81 kWh…

This June, as many travelers make plans to attend Pride Month events around the world,…