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Action Construction Equipment Limited Reports Strong Q1 FY25 Financial Performance

Action Construction Equipment Limited (ACE), a leading player in the construction and material handling equipment sector, announced its unaudited financial results for the quarter ended June 30, 2024. The company reported solid growth in both standalone and consolidated financials, demonstrating its resilience in the market.

Q1 FY25 Financial Highlights
ACE’s financial performance in the first quarter of FY25 reflects its strategic focus on operational efficiency and market expansion.

Key Financial Metrics

• Revenue: ACE reported a revenue from operations of ₹73,363 lakhs on a standalone basis, marking an 8.7% increase compared to ₹65,029 lakhs in Q1 FY24. Consolidated revenue stood at ₹73,426 lakhs, slightly up from ₹65,161 lakhs in the same quarter last year.
• Profit Before Tax (PBT): The company achieved a PBT of ₹11,142 lakhs in standalone terms, up from ₹8,923 lakhs in the corresponding quarter of the previous year. On a consolidated basis, PBT rose to ₹11,199 lakhs, compared to ₹8,954 lakhs in Q1 FY24.
• Profit After Tax (PAT): ACE’s PAT for the quarter was ₹8,371 lakhs standalone and ₹8,418 lakhs consolidated, both reflecting a healthy increase from the previous year’s figures of ₹6,726 lakhs and ₹6,757 lakhs, respectively.

Segment Performance

The company’s performance across its key segments highlights its strong market positioning:

• Cranes, Material Handling, and Construction Equipment: This segment continued to be the primary revenue driver, contributing ₹69,067 lakhs in standalone revenue and ₹69,130 lakhs in consolidated revenue.
• Agriculture Equipment: Despite a slight dip, the segment generated ₹4,296 lakhs, reflecting the ongoing demand for ACE’s agricultural solutions.

Operational Efficiency and Cost Management

ACE’s focus on cost management is evident in its improved EBITDA margins. The company reported a total expense reduction, with significant cost savings in materials and operational expenses. These efforts have contributed to a robust EBITDA, supporting the company’s profitability.

Outlook and Strategic Initiatives
ACE’s management remains optimistic about the company’s growth trajectory for FY25. The company’s ongoing investments in technology, product innovation, and market expansion are expected to drive continued growth. Additionally, the company is well-positioned to benefit from increased infrastructure spending and industrial activities in India.

Dividend Announcement

In line with its commitment to delivering shareholder value, the Board of Directors has recommended a final dividend of ₹2.00 per equity share, subject to approval at the upcoming Annual General Meeting scheduled for August 27, 2024.