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

Executive summary

• Achieved best-ever Q1 performance in revenue and margins for Q1 FY25, with strong growth momentum and operational revenue up 12.82% year-over-year.

• 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.

• Market leader in mobile and tower cranes, with over 63% market share in mobile cranes and more than 60% in tower cranes domestically.

• Diversified product portfolio and presence across construction, infrastructure, manufacturing, logistics, and agriculture sectors.

• Maintained growth in revenues and profits year-over-year, driven by operational efficiency and product strength.

Financial highlights

• Q1 FY25 consolidated revenue from operations was ₹73,426 lakhs (INR 734 crores), up from ₹65,161 lakhs in Q1 FY24, a 12.82% increase year-over-year.

• EBITDA for Q1 FY25 was INR 1,262 Mn (₹125.5 crores), a 29% increase year-over-year, with margin expanding to 17.11%.

• PAT for Q1 FY25 stood at ₹8,418 lakhs (INR 84.18 crores), up 24.6% year-over-year, with PAT margin at 11.41%.

• Basic and diluted EPS for Q1 FY25 was ₹7.07, a 24.7% increase year-over-year.

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

Outlook and guidance

• Reiterated consolidated growth guidance of 15%-20% with sustained margins for FY25.

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

• Continued government emphasis on infrastructure, manufacturing, and capital expenditure is expected to drive growth in FY25.

• Plans to increase export contribution to total revenues over the next 2-3 years, with new products tailored for international markets.

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