|
Ramkrishna Forgings held its conference call after it declared its results for June 2015 quarter.
Alok Kumar Sarda, Executive Director of the company addressed the call.
Highlights of the call:
In June 2015 quarter sales grew 81% to Rs 241.76 crore. PAT jumped 200% to Rs 17.70 crore.
Quarterly performance is satisfactorily and as per expectations.
Management compared performance with Q4 vs Q1.
Top line is maintained.
Charged 2.72 crore as interest cost and credited to expenses ac. This adjustments will come in current quarter and future quarters also.
Adjusted EBITDA is 19.63% against the higher reported.
Thus Interest cost will be lower by 2.72 crore.
Recently declared 6300 press commercial production. This will start from the third quarter.
Second phase of 12500 tons phase crankshaft establishment will be able to start production soon. Third quarter will see small contribution from this expanded capacity.
Tax will be 30% for the full year on ac of asset capitalization.
Maintain guidance which was discussed last year.
Q3 and Q4 will see significant improvement in business performances.
40% of business comes in first half and 60% of sales comes in second half.
Q1 for the company is not great.
The company bagged 14 million dollar order from overseas OEM and will start from Jan-Feb 2016.
The existing capacity is completely sold out.
Current debt is Rs 740-750 crore.
Domestic sales were 9400 tone and exports were 8000 tons.
The more the company does machining business the raw material cost as % of sales will come down.
The company is hoping that OPM will be above 18-18.5% as guided before.
Depreciation in FY 2017 will be Rs 70-75 crore.
Mining sales was 2%, general engineering was 1%.
MHCV is seeing decent uptrend. Feedback from MHCV is very positive.
In FY 2016 the company is looking at sales of Rs 1200 crore. OP will be around 220-230 crore.
If raw material price comes down it does not impact the company's profitability. But sales goes down by that much.
Tonnage will be 80000 this year and will do 100000-120000 tones next year. Very difficult to predict how much is or will be machining and non machining.
FY 2017 sales will be around Rs 1500 crore of sales.
The company can do Rs 2000 crore sales in FY 2018. But it is planning capex of Rs 230-240 crore from which it will be able to do sales of Rs 2500 crore with better margins as the company will increase machined sales.
Total current running capacity is 85000 tons and the company is using 85%.
With addition of 6300 and 12500 tions from 3rd quarter it will grow to 115000 tons.
|