BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Reliance Securities Report
Ramkrishna Forgings Ltd. delivered a strong performance in Q2 FY23 beating our estimates across the parameters. Revenue grew by 32% YoY (up 17% QoQ) to Rs 7.6 billion (versus our estimate of Rs 6.6 billion), on the back of average selling price growth of 16% YoY (up 11% QoQ) and volume growth of 14% YoY (up 6% QoQ).
Ebitda increased by 22% YoY (up 18% QoQ) to Rs 1.7 billion (surpassing our estimate by 20%), while Ebitda margin contracted by 174 bps YoY (up 22 bps QoQ) to 22.3% (75 bps above our estimate of 21.6%) due to better volumes and realisation in export business.
Raw material/sales grew by 314 bps YoY (up 323 bps QoQ).
Ramkrishna Forging recorded a profit after tax of Rs 639 million (up 28% YoY/ up 35% QoQ), 31% above our estimate of Rs 488 million. We expect a commercial vehicle upcycle to continue over the next one-two years in domestic market and improvement in global CV industry with likely ease on semiconductor supply.
Click on the attachment to read the full report:
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.