Ramkrishna Forgings Ltd. witnessed a 3% surge in its share price on March 28, following the announcement of a new forging machine, ‘Upsetter’, commencing commercial production at its Jharkhand facility on March 27. This strategic expansion is set to enhance the company’s production capacity by 14,250 Metric Tons per annum (MTPA), catering to the growing demand in the forging industry.

The company, in a stock exchange filing, highlighted that the new addition boosts its total production capacity to 2,43,400 metric tonnes for hot and warm forgings and 25,000 metric tonnes for cold forgings. This development aligns with Ramkrishna Forgings’ long-term strategy to expand and strengthen its market position.

Investment in Growth and Technology

To support this expansion, Ramkrishna Forgings has invested ₹40.85 crore, financed through a mix of equity and debt, as part of its capital expenditure plan. The new ‘Upsetter’ machine plays a crucial role in the forging process, enabling the company to produce high-quality forged products with greater efficiency. This move will help strengthen its domestic and international market presence.

An "Upsetter" machine is widely used in metalworking to shape metal by applying pressure and force, making it a valuable addition to the company’s production line.

Stock Market Reaction and Financial Performance

The market reacted positively to this announcement. Ramkrishna Forgings shares opened flat at ₹781.95 on the BSE but soon climbed over 3% to reach an intraday high of ₹805.

The company’s financials also reflect strong growth momentum. In the third quarter ending December 31, 2024, Ramkrishna Forgings reported a 14.6% year-on-year (YoY) rise in net profit, reaching ₹99.6 crore, compared to ₹86.9 crore in the previous year. Additionally, revenue from operations grew 7.9% YoY to ₹1,073.8 crore, up from ₹995.6 crore in the same period last year.

Strategic Expansion to Meet Rising Demand

With the forging industry witnessing increasing demand across automotive, industrial, and infrastructure sectors, Ramkrishna Forgings’ expansion is a timely move. The new capacity addition will enhance production efficiency, improve turnaround times, and support the company’s growth trajectory.

Future Prospects and Market Positioning

This expansion will allow Ramkrishna Forgings to strengthen its supply chain, attract new customers, and solidify its leadership in the forging industry. The company’s ongoing investments in technology and capacity building reflect its commitment to long-term growth.

With strong financial performance and continuous expansion, Ramkrishna Forgings remains a key player in India's forging sector, poised for further growth.

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