ACE recorded its best-ever Q2 (July-September), reporting significant revenue growth and improved margins. ACE reported a robust performance with operational revenue increasing by 12.2% year-on-year. The company saw its EBITDA margin expand by 268 basis points, reaching 18.04%, driven by improved operating efficiency and a favorable product mix.
In its Cranes, Material Handling, and Construction Equipment segment, ACE achieved a 13.11% growth in revenue compared to the previous year, alongside a 9% increase in unit sales, underscoring the strength of demand across key markets.
Executive Director Sorab Agarwal attributes ACE’s consistent performance to strategic clarity, brand strength, and agile management. He emphasized that by balancing growth initiatives with prudent financial management, ACE has strengthened its liquidity, optimized working capital, and fortified its balance sheet, positioning the company to pursue growth opportunities and drive long-term value.
Financial Highlights
Operational revenue reached Rs. 754.34 crore, a 12.2% YoY increase, while EBITDA rose by 34.47% to Rs. 142.19 crore. Profit before tax (PBT) rose to Rs. 126.26 crore with a margin of 16.01%, and profit after tax (PAT) increased to Rs. 94.37 crore with an 11.97% margin, aided by operating leverage, product mix improvements, cost efficiencies, and favorable commodity prices.
Segment Performance
The Cranes, Material Handling & Construction Equipment division achieved revenue of Rs. 693.07 crore, marking a 13.11% YoY increase, with 2,863 units sold, up by 9% YoY. The segment’s margins also grew by 39.77% YoY, reaching Rs. 127.41 crore.
The Agri Equipment Division posted revenue of Rs. 61.27 crore with a margin of 3.85%, with demand expected to improve as market conditions stabilize. For H1 FY25, ACE’s operational revenue grew by 12.5% to Rs. 1,488 crore, with EBITDA up by 31.72%, PBT up by 27.9%, and PAT up by 26.32%.
Outlook
India’s Union Budget for FY25 has allocated INR 11.11 lakh crore for infrastructure investment, a 17% increase, reflecting strong growth prospects for the sector. ACE, positioned in infrastructure, manufacturing, logistics, and agriculture, expects sustained demand, especially for cranes and construction equipment, in line with India’s development goals for 2047.
