Construction & Engineering company Action Construction Equipment declares Q3FY22 result: The company achieved its highest ever Q3 Revenues and the second best quarterly financial performance in its history. ACE continued to post robust topline growth due to sustained customer focus. The operational revenue grew by 9% on a YoY basis and 21% on QoQ basis. Strong Revenue growth across all segments: Cranes grew by 11.5 % QoQ Construction Equipment Segment grew by 19% QoQ Material Handling Equipment grew by 15% QoQ Agri Equipment grew by 83% QoQ ACE expanded its business in the Defence Sector by getting an order for supply of Special Mobile Cranes to Defence R&D; organization and also received an order for supply of Special Truck mounted Multi-function machines by Dakshin Haryana Bijli Vitran Nigam. Going forward, the allocation towards capital expenditure and infrastructure layout including the PM Gati Shakti initiative augurs well for demand, however, we anticipate inflation to continue in Q4-FY22 which may put the margins under pressure. Result PDF
Highlights: The company achieved its highest ever Q2 Revenues, EBITDA and PAT Margins ACE continued to post robust Margins due to sustained focus on cost efficiencies, higher operating leverage and better product mix. The PBT and PAT grew by 56% and 57% YoY respectively. Strong Revenue growth of 35% YoY across all segments : Cranes grew by 45% YoY Construction Equipment Segment grew by 30% YoY Material Handling Equipment grew by 42% YoY Agri Equipment was down by 6% YoY due to erratic monsoon ACE expanded its business in the Defence Sector by getting an order for “Multi Purpose Tractors” from the Ministry of Defence (Army). The company also received a letter of Intent for manufacturing and supply of Special Knuckle Boom Cranes designed by ACE for Ministry of Defence Successfully completed QIP of Rs. 135.52 crores from a diverse mix of marquee investors in September 2021. Going forward, the unwavering focus of the government on Infrastructure space and the launch of PM Gati Shakti National Master Plan augur well for demand, however, we anticipate inflation to continue in Q3-FY22 which may put the margins under pressure. Result PDF