Action Construction Equipment conducted their Q3 FY23 earnings conference call on 10th February 2023
Here are the key highlights ππ»ππ»ππ»
βMargins from the bottom of our heart we are Indian and we want to work for our defense forces so we are not over charging or anythingβ
Here are the key highlights ππ»ππ»ππ»
βMargins from the bottom of our heart we are Indian and we want to work for our defense forces so we are not over charging or anythingβ
β’ Overview:
- Co. recently unveiled India's first indigenously designed & developed fully electric mobile crane with breakthrough technology & zero emissions
- Expanding presence in heavy crane segment, Co. also launched India's biggest crane with 180 tonne lifting capacity
- Co. recently unveiled India's first indigenously designed & developed fully electric mobile crane with breakthrough technology & zero emissions
- Expanding presence in heavy crane segment, Co. also launched India's biggest crane with 180 tonne lifting capacity
β Co. has also launched new range of tele handlers & also India's first series of aerial work platforms popularly called as AWP for the domestic markets
β With these new launches, ACE marks India's first indigenously developed 100% electric construction business & propels India's growth on the global platform of technological advancement
- Co. opened 4-5 markets in Turkey, Argentina, Brazil, Mexico and even Ukraine
- Co. opened 4-5 markets in Turkey, Argentina, Brazil, Mexico and even Ukraine
- Demand is very robust all across with respect to end user segments manufacturing, mining, infrastructure. With upgradation of railway stations, ports, roads, bullet train, & steel industry, steel prices firming up again means the demand is going up and more cranes requirement
β’ Capex:
- Co. is close to 68% to 70% capacity utilization with cranes at above 75%, construction equipment at 50% and metal handling about 65%
- Co. is close to 68% to 70% capacity utilization with cranes at above 75%, construction equipment at 50% and metal handling about 65%
β For the current year co. is setting up a new manufacturing facility for making bigger cranes with spending about Rs.35 Cr. This will enhance the capability to produce more bigger cranes and now that co. is also launching bigger models
β Apart from that co. also initiated the capex with respect to regular crane production wherein co. want to increase capacity by 40% and 50% that will again be around Rs.35 Cr to Rs.40 Cr
- Co. will manage capex from internal accruals
- Co. will manage capex from internal accruals
β’ Financials:
- There is seasonality in business with Q1 definitely slower than Q4 & Q2 is definitely better than Q1, but still on the slower side. 2nd half picks up very fast Q3 & Q4. Traditionally we do about 40% to 45% in the first half and 55% to 60% in the second half
- There is seasonality in business with Q1 definitely slower than Q4 & Q2 is definitely better than Q1, but still on the slower side. 2nd half picks up very fast Q3 & Q4. Traditionally we do about 40% to 45% in the first half and 55% to 60% in the second half
β Accordingly the margins when the revenue is slightly not so great do not rush up in the first half but they start to improve in the second half so that seasonality is there a little bit first half and second half
- Co. has got Rs.293 Crores to Rs.300 Crores in net cash
- Co. has got Rs.293 Crores to Rs.300 Crores in net cash
β’ Margins for defence:
- βMargins from the bottom of our heart we are Indian and we want to work for our defense forces so we are not over charging or anything I mean it is just sustenance. That is our intention to serve the defense.β
- βMargins from the bottom of our heart we are Indian and we want to work for our defense forces so we are not over charging or anything I mean it is just sustenance. That is our intention to serve the defense.β
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