FIVE YEARS AGO Ramkrishna Forgings Limited (RKFL) found itself navigating a challenging business landscape. Things got worse when the pandemic struck, compelling the founders and the leadership team to reassess their strategies. What precisely led to this downturn? The company's financials paint a vivid picture of the existential crisis. From a robust bottom line of ₹120.11 crore in FY19, RKFL witnessed a stark decline to ₹9.70 crore in FY20, followed by a modest recovery to ₹20.67 crore in FY21.
"The transition of Ramkrishna Forgings started four-five years ago. There are two RKFLS actually-one pre-pandemic and the other one post-pandemic. RKFL had a different kind of working style post the pandemic," says Naresh Jalan, 47, Managing Director of RKFL, who has emerged as the winner in the Emerging Companies category of the BT-PwC India's Best CEOs ranking.
"We went through one of the toughest times of our careers. The pandemic brought to light that a company cannot grow with debt and that is one thing we changed in the post-pandemic era. We decided that the firm has to grow but will grow with free cash flow and only through what we earn rather than growing with debt," he adds.
This assumes significance as the company had historically grown on the basis of debt. But as soon as the company pivoted to a completely new strategy, the financials started to look up. In FY22, the profits jumped to ₹198.03 crore, with the last fiscal-FY23-registering a net profit of ₹248.11 crore.
Esta historia es de la edición March 17, 2024 de Business Today India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición March 17, 2024 de Business Today India.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Pension Scheme - Safety Net
The move to introduce the UPS has evoked mixed reactions. Analysts believe its funding will have limited impact on the fiscal math
The Reit Choice?
Real Estate Investment Trusts (Reits) Are Gaining Traction As Interest Rates Stabilise. But Returns Could Be Affected By Adverse Economic Conditions And Market Volatility
CORPORATE - Calling to Account
The sudden exit of Byju's auditor BDO marks the latest in a long series of setbacks for the edtech firm
EMPLOYMENT: Skills Push
The skill development ministry plans to partner with the UGC to improve the employability of undergraduates
Building on a Vision
L&T'S CHAIRMAN EMERITUS A. M. NAIK HAS BUILT A MAMMOTH ENTERPRISE THAT IS BUILDING A NEW INDIA, FROM ITS METRO RAIL SYSTEMS TO THE RAM TEMPLE
"KYS more important than KYC"
Vijay Kedia is a renowned equity investor; the value of his listed portfolio stands at around ₹1,750 crore
ROXX STAR
THE THAR ROXX COMBINES LUXURY WITH PERFORMANCE TO MAKE A STRONG STATEMENT IN THE MID-SIZE SUV SEGMENT
HIT THE GROUND RUNNING
Smartwatches have become indispensable tools for runners, offering real-time insights into pace, distance, heart rate, and more. Here are a few you can consider
TURNING THE TABLES
INDIA'S FURNITURE MARKET IS POISED FOR A GLOBAL TAKE-OFF. ALREADY, A HOST OF GLOBAL BRANDS HAVE MADE THE COUNTRY THEIR HOME, BUT INDIAN COMPANIES ARE NOT TOO FAR BEHIND
THE EVOLUTION OF ATHERA
IDENTIFYING OPPORTUNITIES IN ADVANCE HAS STOOD THIS BENGALURU-BASED VC FUND IN GOOD STEAD. NOW, WITH A HEIGHTENED FOCUS ON TECHNOLOGY, IT WANTS TO SUSTAIN THE SUCCESS