Ramkrishna Forgings Limited has informed the Exchange about Credit Rating
RKFORGE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
ICRA has placed all of Ramkrishna Forgings' (RKFORGE) credit facilities, totalling Rs. 1,530.05 crore, on 'Rating Watch with Developing Implications' following an inventory discrepancy discovered during the annual physical stock verification. The company estimates the adverse impact at Rs. 120–150 crore, or 4–5% of its net worth, and has appointed two independent external agencies to conduct a joint fact-finding study. Existing ratings of [ICRA]AA- (long term) and [ICRA]A1+ (short term) have not been changed yet, but ICRA expects the total debt-to-operating-profit ratio to marginally cross the 1.5x negative trigger in FY2025. Promoters have committed to infusing funds to compensate stakeholders, and a Rs. 95 crore gain from the sale of subsidiary Globe All India Services, plus tax benefits from the ACIL merger, are expected to partly offset the blow.
Near-term overhang on the stock as investors await the fact-finding outcome — a downgrade is possible if actual losses are materially higher or if governance lapses are found, though the ratings currently remain intact and the capital structure is not at risk.