Action Construction Equipment (ACE) Q1 24/25 earnings summary

Executive summary

• Achieved best-ever Q1 performance in company history, with strong growth in revenue and margins across core segments, despite general elections impacting business momentum.

• Maintains leadership in mobile and tower cranes with over 63% and 60% domestic market share, and a diversified product portfolio spanning construction, material handling, and agriculture equipment.

• Focused on expanding exports, launching new products for international markets, and leveraging India's infrastructure and manufacturing growth.

• Unaudited standalone and consolidated financial results for the quarter ended 30 June 2024 were approved by the Board and reviewed by auditors with an unmodified conclusion.

Financial highlights

• Q1 FY25 consolidated revenue from operations was INR 73,426 lakhs, up 12.82% year-over-year; EBITDA increased by over 28% to INR 1,262 Mn, with margin expanding to 17.11%.

• PAT for Q1 FY25 was INR 8,418 lakhs, up 24.6% year-over-year, with PAT margin at 11.05%; Diluted EPS increased to INR 7.07.

• Sequentially, revenues dropped 12% due to election-related slowdown; EBITDA, PBT, and PAT margins contracted slightly quarter-over-quarter.

• Historical growth: FY24 total income was INR 29,909 Mn, EBITDA INR 4,803 Mn (16.06% margin), and PAT INR 3,282 Mn (10.97% margin).

Outlook and guidance

• Reiterated consolidated growth guidance of 15%-20% with sustained margins for FY25, supported by government infrastructure spending and manufacturing expansion.

• Optimistic about medium to long-term prospects, with potential for guidance revision post-Q2 depending on macroeconomic conditions.

• Plans to increase export contribution to total revenues over the next 2-3 years, supported by new product launches and compliance with global emission norms.

• Expecting demand acceleration post-monsoon and pre-buying ahead of new emission norms in Q3.