Shares of Ramkrishna Forgings surged nearly 8% to hit a fresh 52-week high of Rs 545 after the company posted a 63% year-on-year rise in its net profit and completed the acquisition of Multitech Auto Pvt Ltd (MAPL), Mal Metalliks and Mal Auto Products. 

The company released its latest quarterly results on Sunday. It clocked Rs 76.97 crore net profit in the April-June period of the 2023-24 fiscal, a growth of 63% from Rs 47.26 crore in the same period last year. 

The company’s total income also rose to Rs 835.95 crore from Rs 650.75 crore in the year-ago quarter, posting a 28 per cent rise.

On market risks, he said the company closely monitors macroeconomic risks, proactively mitigating them by prioritising customer relationships and delivering excellent service.

Ramkrishna Forgings, in an exchange filing, said it acquired Multitech Auto Pvt Ltd (MAPL) and its wholly-owned subsidiary Mal Metalliks for Rs 205 crore. It also acquired Mal Auto Products Private Limited for Rs 7 crore.

The company purchased 12,58,990 equity shares, constituting 100% of MAPL, and one share of Mal Metalliks for an aggregate cash consideration of Rs 205 crore. 

Mal Auto Products was acquired by purchasing 60,000 equity for an aggregate cash consideration of Rs 7 crore. 

The company said in the statement that the acquisition aims to expand its product line and fortify its presence in the passenger vehicles, light commercial vehicles, and heavy commercial vehicles segments.

These new product lines are expected to contribute significantly to the company’s financial growth, with an estimated turnover of Rs 500-600 crore within the next two years.