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ACE (Action Construction Equipment Ltd) registered its best ever Q1 i.e. (Apr-Jun quarter) in terms of revenue and margins. Strong growth momentum continued with operational revenue growing by 12.82% on a YoY basis. EBIDTA Margins expanded by 212 BPS YoY to 17.11%
Margin expansion continued, driven by operating leverage, better product mix with improved price realizations and efficient cost control measures. Cranes, Construction equipment & Material Handling Volumes grew by 20% YoY.
On ACE’s performance, Executive Director, Sorab Agarwal shared that the company has maintained its growth momentum in the first quarter of the current fiscal year. Despite the significant event of General Elections, the company has been able to deliver its best ever Q1 i.e. Apr-Jun quarterly performance in Q1 FY25. In the last few years, ACE has delivered high growth across its business segments and has improved on key operating metrics that are now best in the industry.
The operational revenues grew by 12.82% to Rs. 733.63 crores with an expansion of 212 BPS in EBIDTA margins to 17.11% from 15%. The EBIDTA during the quarter increased by 28.73% to Rs. 125.50 crores. As against Rs 97.49 crores, the PBT grew by 24.87% to Rs 111.42 crores and the PAT grew by 24.46% to Rs. 83.71 crores as compared to Rs 67.26 crores in last year's corresponding quarter. The PBT and PAT margins now stand at 15.19% and 11.41% expanding by 147 BPS and 107 BPS respectively for the quarter on a standalone basis. Margin expansion continued, driven by operating leverage, better product mix with improved price realizations, efficient cost control measures and favourable commodity prices.
Further, ACE is in discussions with Kato Works Co Ltd., a Japanese global construction equipment manufacturer of Mobile Cranes & Excavators to establish a joint venture in India. The Joint Venture intends to produce medium and large sized cranes, mainly Truck Cranes, Crawler Cranes and Rough Terrain Cranes for the growing Indian market and in the future, JV also plans to utilize the technology which will be cultivated by the expertise of ACE and KATO to introduce wide range of value-added products for the export market. This joint venture will help the company to establish a business foundation for the larger crane segment which will steadily grow as a pillar of our medium- to long term growth strategy.
The Company has sustained its growth momentum across all operating segments. In the Cranes, Construction Equipment & Material Handling segment during the quarter gone by, ACE registered consolidated revenue of Rs. 690.67 crores as compared to Rs 575.02 crores in Q1FY24. Both the revenue and volumes are up by 20% YoY. The margins also expanded to Rs 103.76 Crores vis-à-vis Rs 83.66 crores; thereby registering a growth of 24.03% YoY.
