Shares of Ramkrishna Forgings surged as much as 3.8% on Thursday to hit a 52-week high of ₹617.9, after the company bagged a contract worth ₹145 crore from the European original equipment manufacturer (OEM) sector for differential components.
The share price of the company opened higher at ₹599.95, up 0.8%, as against the closing price of the previous session at ₹594.80. The scrip closed 3.10% higher at ₹613.25. In contrast to this, the BSE Sensex ended 0.59% or 388.40 lower at 65,151. At the current level, the share price of the company is down 252% from the 52-week high of ₹617.90.
According to the company, the contract spans a duration of four years. Through the agreement, the company plans to strengthen its foothold in Europe by expanding its product range and contributing to the efficiency and performance of vehicles in the region.
Earlier this week, the Kolkata-based company bagged an order worth ₹107 crore for supplying rear axle and transmission components. Through the contract, the company plans to bolster its presence in the North American market.
The awarded contract pertains to the production and supply of Rear Axle and Transmission Components for Class 5, 6, and 7 vehicles. "With this accomplishment, the company is strategically expanding its footprint in North America and serves as a pivotal opportunity to strengthen its position within the light vehicle sector. The continuous growth trajectory showcased by this substantial business contract underscores the company's dedication to meeting and exceeding the demands of the North American market. This achievement not only solidifies its position as a key player in the industry but also demonstrates its ability to forge strong partnerships and secure meaningful business ventures," says Ramkrishna Forgings.
In June this year, a consortium of Ramkrishna Forgings and Titagarh Wagons won an order worth ₹12,226.5 crore from the Indian railways. The order is for the manufacturing and supply of 15,40,000 forged wheels of different rolling stocks to the Railways over a period of 20 years, under the Atmanirbhar Bharat Initiative by the Ministry of Railways.
"The contract will see the consortium delivering 40,000 forged wheels during the first year, 60,000 wheels in the second year and 80,000 wheels every subsequent year thereafter, with the total contract valued at ₹12,226.5 crore," both companies said in a joint statement.
The consortium will be establishing a manufacturing facility to manufacture these forged wheels, with total annual production targeted at 2,00,000 wheels when fully operational. "Not only will this facility address the demands of the domestic railway sector, but also help the consortium address the latent demand from the private sector as well as export markets," the statement added.
In the June quarter, the company reported 63% year-on-year (YoY) jump in its net profit to ₹76.97 crore as against ₹47.65 crore reported in the same period last year.
