Ramkrishna Forgings Ltd. shares jumped over 3% on Friday, March 28, after it commenced commercial production of a new machine, ‘Upsetter,’ at its Jharkhand facility on March 27. The new machinery is used in the forging process in metalworking.

Ramkrishna Forgings said in a stock exchange filing that this expansion will increase the company’s production capacity by 14,250 Metric Tons per annum (MTPA), enhancing its ability to meet growing customer demand. Following this addition, the total production capacity of the company now stands at 2,43,400 metric tonnes for hot and warm forgings and 25,000 metric tonnes for cold forgings.

The capacity addition is part of the company’s ongoing strategy to cater to increasing customer demands in the forging industry.

To support this expansion, Ramkrishna Forgings has made an investment of approximately ₹ 40.85 crore, which has been financed through a mix of equity and debt, as per the company’s capital expenditure plan.

The new machinery will primarily help the company produce more high-quality forged products, ensuring it remains competitive in both domestic and international markets.

This move is expected to boost production efficiency and meet the rising demands of its customer base.

An “upsetter” is a type of machine used in the forging process, specifically in metalworking. It is used to shape and form metal by applying a combination of pressure and force.

Opening flat at ₹781.95 apiece on the BSE, shares of Ramkrishna Forgings Ltd. rose more than 3% in the morning session to touch an intraday high of ₹805 on Thursday.

Ramkrishna Forgings reported a 14.6% year-on-year (YoY) increase in net profit for the third quarter ended December 31, 2024, to ₹99.6 crore, compared to ₹86.9 crore in the same period last year.

The company also saw a 7.9% rise in revenue from operations, which stood at ₹1,073.8 crore, up from ₹995.6 crore in the corresponding quarter of the previous fiscal.

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