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Action Construction Equipment Ltd. conducted their Q1 FY23 conference call on 12th August 2022
Here are the key highlights 👇🏻👇🏻👇🏻
Here are the key highlights 👇🏻👇🏻👇🏻
• Overview:
- Best ever Q1 performance in terms of revenue and profits
- -Awarded a contract to set up state-of-the-art assembly plant for manufacturing tractors, backhoe loaders and fabrication of agricultural equipments for Govt of the Republic of Ghana.
- Best ever Q1 performance in terms of revenue and profits
- -Awarded a contract to set up state-of-the-art assembly plant for manufacturing tractors, backhoe loaders and fabrication of agricultural equipments for Govt of the Republic of Ghana.
- The project will play a vital role in opening up of export markets in western Africa & augmenting co. export efforts
- Co. got breakthrough order for supply of 40 Backhoe loaders from border road organisation, Ministry of Defence. This will be supplied during the this quarter
- Co. got breakthrough order for supply of 40 Backhoe loaders from border road organisation, Ministry of Defence. This will be supplied during the this quarter
⁃ Co. continued executing the pilot order of 4x4 multi-purpose tractors along with special attachments specifically designed for the Indian Army
- Co. took over a new startup crane company to operate in price sensitive lower zone and operations have started. It also took over another small company operating in pick & carry crane and tower crane segment
• Financials:
- Due to 1-time exceptional income about Rs 19.8cr, the consolidated profitability numbers have increased a bit more
- Inflation worsened in the quarter and prices of many commodities went all time high. Despite this co. maintained a good EBITDA margin
- Due to 1-time exceptional income about Rs 19.8cr, the consolidated profitability numbers have increased a bit more
- Inflation worsened in the quarter and prices of many commodities went all time high. Despite this co. maintained a good EBITDA margin
⁃ Prices of commodities have started to soften and if this stays it will positively impact co. sequential margins from Q2 onwards
• Segmental business:
- Crane business grew 58% YoY largely due to low base of last year because of Covid
- With expectations of good monsoon and likely record kharif output, co. expects tractor industry to perform better in the current year as compared to last year
- Crane business grew 58% YoY largely due to low base of last year because of Covid
- With expectations of good monsoon and likely record kharif output, co. expects tractor industry to perform better in the current year as compared to last year
⁃ Co. expects 15-20% growth in crane and agri segment for the current year and 30-35% and 20-25% growth across construction equipment and material handling equipment
• Utilisation:
- Crane segment - 65 to 70%
- Construction equipment - 35%
- Material handling - 65%
- Agri - 40 to 45%
- In Q3,Q4 co. looking at cranes utilisation at 75-80%, construction equipment at 50-60%, material handling 75-80% and agri at 50%
- Crane segment - 65 to 70%
- Construction equipment - 35%
- Material handling - 65%
- Agri - 40 to 45%
- In Q3,Q4 co. looking at cranes utilisation at 75-80%, construction equipment at 50-60%, material handling 75-80% and agri at 50%
• Others:
- Co. in line of achieving the target of Rs 2500cr sales by FY24
- Some orders where entry barriers are high and co. getting better value addition: Two order for the Indian defence are special purpose specially built cranes
- Co. in line of achieving the target of Rs 2500cr sales by FY24
- Some orders where entry barriers are high and co. getting better value addition: Two order for the Indian defence are special purpose specially built cranes
⁃ Co. hopeful of better exports in the current financial year
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