Ramkrishna Forgings Hits 52-Week High, Lands Rs 145 Crore Contract for Vehicle Components

17 Aug 2023 , 01:09 PM

Ramkrishna Forgings share price surged by 3 % during early trading, reaching a 52-week high of Rs 614.35 on August 17, following the acquisition of a contract worth Rs 145 crore. The contract, spanning a four-year duration under a long-term agreement, was awarded to the company on August 14.

The contract involves a $13.65 million (about Rs 107 crore) order from clients in North America for the supply of rear axle and transmission components. The contract specifically covers the production and supply of rear axle and transmission components for Class 5, 6, and 7 vehicles.

In its June quarter financial results, Ramkrishna Forgings reported a significant 63 % increase in net profit, reaching Rs 76.97 crore. Additionally, the company’s total income saw a 28 % rise, totaling Rs 835.95 crore.

In July 2023, the company acquired Multitech Auto Private Ltd and its subsidiary Mal Metalliks Private Limited for Rs 205 crore. Multitech Auto and Mal Metalliks are manufacturers of various automobile parts such as assembly top covers, shift cylinders, gear assemblies, differential cases, differential covers, and a range of hubs, among other components.

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