Last Updated: August 22, 2023, 12:01 IST
The metal forgings maker Ramkrishna Forgings shares hit a 52-week high at Rs 690 in the morning trade on August 22 after the company announced that its plan to acquire JMT Auto, an auto components manufacturer, had been approved ‘verbally’ by the principal bench of the National Company Law Tribunal (NCLT).
JMT Auto, an auto components manufacturer, has been under corporate insolvency process since February 2022 over failure to repay debt amounting to Rs 60.27 crore to its creditor Axis Bank.
For Q1FY24, the company reported a 27.61 per cent year-on-year (YoY) rise in its revenue from operations at Rs 892 crore. Profit after taxes increased 54.90 per cent YoY to Rs 79 crore. The operating profit margins for the April-June quarter expanded by 100 basis points to 22 per cent.
Ramkrishna Forgings is engaged in the manufacturing of forgings, primarily for the automotive, construction, and industrial sectors. Its product range includes components like crankshafts, connecting rods, axles, and gear blanks.
Earlier this week, the company said it was awarded a business contract valued at 16 million euros under a long-term agreement that will span four years.
It will solidify the company’s position in the European Original Equipment Manufacturer (OEM) sector, Ramkrishna Forgings said.
“Having successfully served the same OEM for the past 5 (five) years by supplying Front Axle Components, the Company has now been entrusted with the production and delivery of Differential components. This expansion into Rear Axle components stands as a testament to the company’s quality and reliability in the eyes of the OEM, paving the way for further collaboration and growth in their partnership, also enhancing the Company’s presence in the European market,” Ramkrishna Forgings said.
Ramkrishna Forgings said the new business leverages its proven track record and expertise to venture into a new realm of automotive components. With this development, the company is poised to strengthen its foothold in Europe by expanding its product range and contributing to the efficiency and performance of vehicles in the region, Ramkrishna Forgings said.