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Posted By Priya Singh on 11-Nov-2024 04:54 AM
Key Highlights:
Action Construction Equipment (ACE) has announced strong financial results for the second quarter of FY25, marking its best July-September quarter performance. The company reported a 14.5% increase in revenue compared to last year, showing a high rise in profitability.
Operational Revenue Reaches Rs. 754.34 Crores
ACE’s operational revenue rose to Rs. 754.34 crores, an increase of 12.2% year-over-year. EBITDA margins expanded by 268 basis points to 18.04%, with EBITDA climbing to Rs. 142.19 crores—a 34.47% rise from last year's Rs. 105.74 crores.
Strong Performance in Cranes, Material Handling & Construction Equipment
The core business segment of Cranes, Material Handling, and Construction Equipment achieved revenue of Rs. 693.07 crores, marking a 13.11% increase from Q2 FY24. The company sold 2,863 units, up by 9% from the previous year.
Growth in the Agri Equipment Division
The Agri Equipment division generated revenue of Rs. 61.27 crores, with a margin of 3.85%. ACE anticipates higher demand in this sector due to positive factors like good water reservoir levels and better access to consumer credit.
Comments from Management
Sorab Agarwal, ACE's Executive Director, credited the growth to the company’s strategic approach and brand strength. He highlighted the team’s ability to balance growth with sound financial management, supporting capacity expansions with advanced technology.
First Half FY25 Results
For the first half of FY25, ACE reported a 12.5% growth in revenue, reaching Rs. 1,488 crores. The company’s EBITDA grew by 31.72% to Rs. 267.7 crores, and PAT rose by 26.32% to Rs. 178 crores.
Positive Industry Outlook with Government Support
ACE is optimistic about the future, supported by the government’s focus on infrastructure. The Union Budget allocated Rs. 11.11 lakh crores for capital expenditure. As a result, it will boost the demand for construction equipment. Investments in roads and railways also position ACE to benefit from India’s infrastructure push.
CMV360 Says
ACE’s exceptional Q2 results underscore its growth potential and strong market position. With a favorable outlook for infrastructure and agriculture, ACE appears well-prepared to maintain its momentum. The company's strategic expansion and alignment with government initiatives make it a vital player in India’s path to becoming a developed economy by 2047.
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