Action Construction Equipment (ACE) Q2 24/25 earnings summary

Executive summary

• Achieved record Q2 FY25 revenue and margins, with operational revenue of INR 754.34 crores and EBITDA margin of 18.04%, driven by strong growth across all operating segments.

• H1 FY25 total income reached INR 1,552.7 crores, up 14.3% YoY, with EBITDA of INR 267 crores and PAT of INR 179 crores.

• Maintains leadership in mobile and tower cranes with over 63% and 60% domestic market share, respectively.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY25 were approved by the Board, with auditors issuing unmodified review reports.

Financial highlights

• Q2 FY25 operational revenue grew 12.2% YoY to INR 754.34 crores; EBITDA margin at 18.04%; PAT margin at 11.99%.

• H1 FY25 EBITDA margin improved to 17.32%, PAT margin at 11.53%, and diluted EPS at INR 15.03, up 26.5% YoY.

• Net investments and cash at INR 610 crores after accounting for debt; net debt to equity improved to -0.55.

• Basic EPS for Q2 FY25 stood at INR 7.97, up from INR 6.21 in Q2 FY24.

• Working capital days reduced to 18 in H1 FY25 from 26 in FY24.

Outlook and guidance

• Reiterated guidance of 15%+ growth in cranes, material handling, and construction equipment for FY25; agri segment expected to grow 10-15%.

• FY26 revenue target of INR 4,400 crores, aiming to triple revenue from FY23 to FY26.

• Expects continued growth supported by government infrastructure spending and manufacturing sector expansion.

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