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Dolat Capital Report
Ramkrishna Forgings Ltd. Q1 FY21 performance was dismal. A sharp decline in domestic medium and heavy commercial vehicles sales due to lockdown adversely affected its domestic revenue (down 82% YoY).
Export revenue also plunged 46% YoY, driven by slowdown in the Class 8 truck segment and impact of lockdown.
Ramkrishna Forgings reported an Ebitda loss of Rs 15 million due to a negative operating leverage.
Adjusted profit after tax loss of Rs 265 million was attributed to higher depreciation and interest cost.
The company is in the midst of a demand slump in the domestic M&HCV segment while the Class 8 truck segment has witnessed some uptick in volume in last two months.
The company is focusing on cost control measures to reduce fixed costs Rs 250 million to tide over the tough business environment.
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