Ramkrishna Forgings Reports A Good Q4 | Revenue Mix This Year Seen At 60% Domestic & 40% Exports: Co

追加: 2026-05-07

[00:00:00]Let's get talking about a couple of companies. We have RK Forgings or Ramkrishna Forgings that we're going to talk about. Q4 revenue surged and uh margins expanded, but profit slumped over 70%. To discuss the quarter gone by and the road ahead with the company, uh we have the managing director Naresh Jalan joining in. Mr. Jalan, thank you very much for taking the time out. If you could just start by giving us a sense in terms of how exactly you all did uh when it comes to, you know, the margin picture because you all have improved quite significantly on the margin front this time.

[00:00:33]I think with the current geopolitical issues going on and with the cost pressures happening in terms of commodities, it is very difficult to exactly gauge out how the year is going to plan out.

[00:00:44]But as of now, I think we are already in discussions with our customers for pass-on uh with this war. So, we are waiting for a couple of weeks more before we exactly have the numbers from the customers in terms of how much customers are going to pay for this.

[00:01:00]But in terms of our performance, I think we are doing extremely well and I think this year is going to be a transition year in overall performance for RKFL both in terms of revenue and in terms of profitability.

[00:01:12]Mhm.

[00:01:13]When you say a transformational year, you have uh put out some earnings drivers as well. There's newly commissioned forging and casting capacities, high utilization uh from different segments. What are you guiding for in terms of a revenue growth? And I know you're talking about uncertainty being there, uh but any band that you have in terms of margin improvement, will it uh be around the 17% mark or somewhere in the middle of the expansion that you've seen currently?

[00:01:39]I think it is very difficult for us to say right now, but uh I think uh overall in terms of guidance, we are going to maintain 70% 17% plus margins for the entire year.

[00:01:51]And I we are going to going to do better than that, but if providing exact band right now is very difficult in the current scenario.

[00:01:59]Absolutely, sir. Good afternoon. This is Vinny joining in the conversation.

[00:02:03]Sir, you know, domestic contribution obviously given this uncertain time right now, domestic contribution also has seen a jump, 68% from previous 59%.

[00:02:11]So, overall, uh you know, now do you think this is more of a structural change? You'll focus more on domestic, and what's the outlook for export as well, which was under pressure and has seen a bit of a muted performance this time of just 3% growth?

[00:02:24]I think this year exports are going to be very good. I think both Europe and North America is doing extremely well, and particularly North America has come back since last quarter, and our warehouses are almost drying out right now in terms of material. So, I think this year I think we are exports are going to do extremely well. Last year performance in terms of exports were primarily driven by North America tariff issues and other things, but all getting settled. I think this year you will see a much better exports and much better North American sales. What would the contribution then be of domestic and exports? How would the mix change? So, I think this year we are looking at almost 64, back to our old days of 60/40, 60% domestic and 40% exports.

[00:03:13]Okay. All right. That's interesting that you say that you're seeing so much traction coming in from North America, and that you are at a point where you probably are finding it difficult to even service those orders.

[00:03:23]Just tell us a little more about that.

[00:03:25]When you talk about this kind of demand, where is it coming from? What are the margins that you're seeing in North America? How is it as compared to say the other export markets? What is it growing at vis-a-vis the other markets?

[00:03:39]In North America, if you see the Class 8 data also which is coming out since January, you see there is year-on-year there is a large uptick even in the month of April, there is a 245% increase in Class 8 trucks demand and order book in North America. So, this is driving as well as passenger vehicle and new categories which we have entered in North America primarily to the passenger vehicle sector and the auto non-auto motive sector in North America.

[00:04:10]They are showing lot of traction and the demand is right now very good in terms of overall our exposures in North America is concerned. Okay. You know, if you talk about the forging volumes.

[00:04:21]Go ahead. We are looking at much better realization as well as profitability. If the war subsides and we are get back to the old shipping cost, I think our profitability is from North America should be extremely good. Okay. So, of course depends a lot on what happens with West Asia crisis and I understand it's difficult to give a guidance in that scenario. You spoke about realization. So, if I talk about forging, the volumes are strong 36% on a Y Y basis, but realizations have gone down despite that. Are you seeing pricing pressure coming in from OEMs or is it because of product mix changes and what led to that 36% volume growth? Are you seeing a structural change in demand by core CV or there is differentiation in the product mix overall?

[00:05:07]Overall, there is a demand product mix change in our categories of supplies, but the realization basically is down because if you have seen the steel prices have been throughout the last year has been on the down tick, but now post this war, I think from 1st April onwards we are seeing an uptick in steel prices which will be driven driving our realization on the upward side. Also, because the market is extremely strong right now both in domestic and in the export category both in Europe and North America. We have been able to choose the products in terms of right pre-mix for our manufacturing to get a better realization and revenue.

[00:05:50]Mhm.

[00:05:51]Sir, you know, just in forgings, one more thing. This uh volumes which have seen a growth, could you explain us the demand also?

[00:05:58]Where are you seeing demand coming in from? How is the CV demand this time as well? Has that been strong? And what is the outlook that you have for CV demand?

[00:06:07]So, you want to know domestic or in exports?

[00:06:09]>> Domestic. Yeah. Domestic, I think CV demand is pretty stable right now. And I can comment on the last 2 months of performance. I think it is pretty stable and for the year projections, whatever we have received from OEMs, it looks to be very stable unless there is a huge surge in fuel prices change or something which affects the demand, but right now we can say very guardedly, but the demand is pretty on the upside.

[00:06:41]Okay. All right. So, we're going to let you go on that note. Thanks very much for joining in and speaking with us. So, that is the view coming in from Ramkrishna Forgings. We need to take a short break with the new For over 25 years, CNBC-TV18 has been the guiding force for investors, steering them through the markets.

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