Ramkrishna Forgings secures LOI worth 22.5 billion rupees from the Mexican axle manufacturer

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On Tuesday, Ramkrishna Forgings Limited, a leading supplier of rolled, forged and machined products, announced that it had purchased from a major Tier 1 axle manufacturer in. Mexico has received a letter of intent worth 225 million rupees, or US $ 3 million per year, for the manufacture of the front axle beam.

Commenting on the win, Lalit Khetan, Executive Director & CFO at Ramkrishna Forgings stated that the notable addition of a large portion of the front axle will help the company bolster its export sales growth and improve the per-vehicle content. He added that the company will continue to explore new regions with potential for expansion to expand its reach and maintain growth in its export business.

Ramkrishna Forgings Limited reported better-than-expected revenue and operating profits for the second quarter of fiscal 22, with revenue, PBIDT (excluding OI) and PAT growing 38.77 percent QoQ, 36.84 percent QoQ, and 78.44 percent QoQ. The company is seeing demand in all regions, product portfolios and customers, driven by strengthening business with existing customers, acquiring new customers and advancing into new segments.

Ramkrishna Forgings is headquartered in Calcutta and has state-of-the-art manufacturing facilities in Jamshedpur as well as offices in Detroit in the US, Toluca and Monterrey in Mexico, Istanbul in Turkey with storage facilities in Hagerstown, Louisville, Detroit in the US, Toluca, Monterrey in Mexico and Westerlo in Belgium.

Over the years, the company expanded its forging and stamping capabilities and built machining and heat treatment facilities, including isothermal annealing, which enabled it to manufacture components for OEMs and Tier 1 companies.

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

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