🟢 At a Glance:
Ramkrishna Forgings Ltd (RKFORGE) reported a strong ₹408 crore standalone net profit in FY25, announced a ₹1 dividend, and even approved ₹204.75 crore preferential warrants for promoters. Sounds bullish? Not so fast. The auditors dropped a bomb — ₹2,200 crore worth of raw material and WIP inventory was overstated. Yes. That’s not a typo.
🏢 About the Company
- Name: Ramkrishna Forgings Ltd
- Industry: Auto components, railway wheels, global forging solutions
- Clients: OEMs across India, North America, Europe
- Recent moves: Set up JV with Titagarh (RTRWL), acquired Mexican unit, sold Globe All India Services
They make the bones of the vehicle — chassis, axles, wheels — and have expanded globally with acquisitions and a government-friendly JV strategy.
🧾 FY25 Standalone
Financial Highlights
| Metric | FY25 | FY24 (Restated) | Change |
|---|---|---|---|
| Revenue | ₹3,65,294 Cr | ₹3,52,287 Cr | 🔼 +3.7% |
| EBITDA | ₹59,254 Cr (approx) | ₹58,451 Cr | 🔼 Marginal |
| Net Profit | ₹408 Cr | ₹214 Cr | 🔼 +90.6% |
| EPS | ₹22.22 | ₹12.13 | 🚀 |
| Dividend | â‚ą1/share | â‚ą0.50/share | âś… Doubled |
So far, everything looks amazing.
📉 But Then Comes This: The ₹2,200 Cr Audit Qualification
Auditors SR Batliboi & SK Naredi threw a qualified opinion on the books.
- A physical inventory mismatch was discovered.
- RKFORGE overstated â‚ą2,052 Cr worth of raw material, scrap and WIP.
- Also ₹502 Cr in FY24 was similarly overstated — but not caught then.
- Management says it was due to “non-recording of rejections at plants.”
Translation: “Our ERP thinks we have 2,000 Cr worth of steel.
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