Ramkrishna Forgings reported a weak set of Q2 earnings. Revenues were down 14.1 percent year-on-year (YoY) but sequentially there has been a big pick up in tonnage.

In an interview to CNBC-TV18, Naresh Jalan, MD of Ramkrishna Forgings said that they are expecting the tonnage to be at least 30 percent more as compared to last quarter.

“As the market demand improves, we should be doing at least 30 percent more than what we have done in last quarter. So, 25,000-27,000 tonne in Q3 and Q4,” he said.

According to Jalan, they should be at 60 percent capacity utilisation by Q4. He is also confident about maintaining the FY22 margin guidance of 22-24 percent.

Jalan further added that the export market is doing extremely well. North America continues to be the dominant market for us, he said.

“Europe in the quarter gone by, our overall exports, we have done close to 25 percent of our exports to Europe. So, going forward Europe is also going to grow, but US is going to be our market where we are going to be dominant,” he added.

Overall revenues from exports stands at 40 percent and we will maintain that going forward, Jalan said.