Ramkrishna Forgings Reports Flat Q3 Performance Amid Strong Half-Year Growth and Rising Challenges

Ramkrishna Forgings, a midcap player in the castings and forgings industry, has released its financial results for the third quarter of FY24-25, with the announcement made on January 17, 2025. The company reported a flat performance compared to the previous quarter.
For the half-year period ending December 2024, Ramkrishna Forgings achieved a Profit After Tax (PAT) of Rs 224.48 crore, which represents a year-on-year growth of 35.95%. The net sales for this period reached Rs 1,073.78 crore, marking the highest quarterly sales in the last five quarters. Additionally, the Profit Before Tax (PBT), excluding other income, peaked at Rs 125.41 crore, reflecting a notable increase of 33.8% compared to the average PBT of the previous four quarters.

Despite these positive indicators, the company is encountering challenges, as evidenced by a decline in its operating profit to interest ratio, which has fallen to 5.49 times, the lowest level in the last five quarters. This shift suggests a change in the company's capacity to manage interest payments effectively.

In light of these developments, there has been an adjustment in the evaluation of Ramkrishna Forgings.

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