Ramkrishna Forgings on Thursday announced the recent award of a business contract valued at 17.2 million euros (approximately Rs 156 crore) from a Eurasian customer in the farm equipment industry. The contract extends over a period of four years, resulting in an annual contract valued at around 4.31 million euros.

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Under the terms of this agreement, the company will supply forged and machined components, catering specifically to transmission and engine parts for its Eurasian client.

"This contract not only reflects our capabilities as a premier provider of forged & machined components but also reinforces the trust our customers place in our expertise. We are committed to delivering products of the highest quality and contributing to the growth of the Eurasian Farm Equipment industry," said Lalit Kumar Khetan, Whole Time Director and CFO, Ramkrishna Forgings.

Speaking to CNBC-TV18, Khetan said: "These are long term contracts rather than the order and like both the orders are a four-year contract. Today’s announcement was more in the farm equipment side. That's the 4.31 million order on the engine and transmission component for my Eurasian customer. And that will be supplied 4.31 million every year for the next four years period."

"Similarly, the earlier order that will also for European OEM and that was for Rear Access Component. So that again as a four year contract, so everything will go on floor by another six to eight months. So you will see the supplies from this contracts that will be starting in next six to eight months and will continue for a period of four years," he added.

Last week, the company secured another contract worth approx Rs 145 crore for differential components from a European original equipment maker. In an interview last month with CNBC-TV18, Naresh Jalan of Ramkrishna Forgings commented on their recent European rail order worth 5 million euros, saying that the company expects 50-60 percent of its order book of European rail orders to come into revenue. Local and export business share will remain at a 60-40 ratio he added.

Ramkrishna Forgings reported a strong set of earnings in Q1FY24, with its operating profit rising more than 28 percent on a year-on-year basis & a revenue growth of nearly 30 percent.

First Published:Aug 24, 2023 11:34 AM IST