Ramkrishna Forgings Limited has informed the Exchange about Credit Rating- Others
RKFORGE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
CRISIL Ratings has placed Ramkrishna Forgings' bank loan facilities of Rs 1,650 crore and commercial paper of Rs 300 crore on 'Rating Watch with Negative Implications', while keeping the actual ratings unchanged at Crisil AA (long-term) and A1+ (short-term). The action follows a final fact-finding report (published June 14, 2025) confirming inventory discrepancies that led to losses of Rs 220.52 crore in FY25 and Rs 50.22 crore in FY24, eroding networth by Rs 202.60 crore (about 6.7% of group networth). FY24 and FY25 financials have been restated — consolidated operating margin fell to 13.9% versus earlier expectations of over 20%, and net debt/EBITDA worsened sharply to over 3.5x from 1.1x. External borrowings surged to Rs 2,013 crore against an expected Rs 754 crore, driven by higher-than-planned capex and working capital needs. To compensate for the loss, promoters plan to infuse Rs 204.75 crore via convertible warrants (9.75 lakh warrants at Rs 2,100 each).
Negative for the stock in the short term — the 'Watch Negative' tag means CRISIL is one step away from a downgrade, reflecting serious concerns about financial restatement, inventory fraud, and rising leverage. However, ratings are still unchanged and promoter commitment to inject Rs 204.75 crore provides some cushion; resolution of the watch depends on internal control strengthening (by September 2025) and stable operating performance.