Action Construction Equipment (ACE) reported a remarkable 108.80% increase in net profit for the fourth quarter of FY24, showcasing its robust financial health and strong market performance.
Operational Highlights:
ACE reported a net profit of INR 98.44 crore for the recent quarter, a substantial 106.59% increase from the INR 47.65 crore recorded in the same period last year. The company’s quarterly sales also saw a significant rise, reaching INR 835.84 crore, up 36.17% from INR 613.84 crore in Q4-FY23. Additionally, EBITDA for the quarter surged to INR 150.6 crore, marking a 19.80% increase compared to Q3-FY24, reflecting the company’s robust operational performance and strategic growth initiatives.
Annual Highlights:
The company achieved a record annual net profit, surging by 91.22% to INR 328.16 crore, compared to INR 171.61 crore in the previous fiscal year. This impressive growth was enhanced by robust annual sales, which increased by 34.92%, reaching INR 2913.80 crore, up from INR 2159.68 crore in FY23. Additionally, the company’s full-year EBITDA stood at INR 480.3 crore, an impressive 83.3% increase from the previous year, highlighting its strong operational performance and successful strategic initiatives.
Achievements:
The company’s operational revenue grew by 36% year-over-year and 11% quarter-over-quarter. This remarkable performance was driven by significant margin expansion, attributed to better capacity utilization, an optimized product mix, improved pricing strategies, efficient cost control measures, and lower commodity prices.
Segment Growth:
The company’s revenue from cranes grew by 37.75% year-over-year, while the construction equipment segment saw an impressive surge of 54.82%. The material handling segment posted an 8.6% increase in revenue, and the agriculture division grew by 12.06% year-over-year. Additionally, the company made significant strides in its international market presence, with export sales increasing by a remarkable 72% year-over-year.
Future Outlook:
Despite potential short-term impacts from the upcoming general election and the monsoon season, ACE anticipates a revenue growth of 15-20% for FY25. ACE’s impressive financial performance underscores its strong market position and operational efficiency. The company’s strategic focus on capacity utilization, product mix optimization, and cost control has paid off, setting a solid foundation for continued growth in the upcoming fiscal year.
