Action construction equipment ltd

Latest Conf call transacript Link : https://www.bseindia.com/xml-data/corpfiling/AttachLive/8078b177-38ee-47c0-9433-cb4814cf3472.pdf

Brief Summary:

• Capex (90-100 Cr) targetted to increase capacity underway, Q3-Q4 completion date. Cranes to target 12,000 units p.a., Construction Equipment target 3000 units p.a., forklifts target 3000 units p.a., Tower Cranes target 900 units p.a. from 400, crawler cranes target 300 units p.a. from 50 units. This all capex will help in achieving 4,000 Cr turnover p.a.
• Growth of 20-25% expected on consolidated basis. Cranes 18-20%, Construction 45-50%, material handling 15-20%,
• Current land only one more capex possible so looking for 50-60 acres land in UP/MP for next factory, might be closed in another 2-3 months.
• 455 Cr cash, 35-40 Cr working capital debt.
• Q1 FY24 performance: ACE reported strong and resilient performance, surpassing Q4 numbers and achieving the best ever quarterly performance in terms of revenues and profit. First time ever Q1 results surpassed previous Q4, and even during monsoon company is under delivering due to high demand.
• Agri segment: Revenues grew by over 30% YoY with an EBITDA margin of 15%.
• Crane segment: Retained dominant market leadership position with revenue of Rs. 441 crores, up 26% YoY.
• Construction equipment segment: Achieved revenue growth of 78% YoY.
• Material handling segment: Recorded revenue growth of 10% YoY.
• Capacity expansion: ACE is focused on expanding capacities and aims to attain revenue of Rs. 4,000 crores at full utilization levels.
• Consolidated growth guidance: Expects a growth of at least 20-25% on a consolidated basis for FY24.
• Export opportunities: Actively pursuing export opportunities and expects export sales to contribute around 10% to revenue this year. Ghana project delayed further, mostly will strat in 2nd half.
• Financials: Debt-free with sufficient liquidity for future growth.
• Inorganic growth: Looking at inorganic growth opportunities within India and outside the country.
• Margin focus: Aims to maintain double-digit margins and focused on cost control and reduction initiatives.
• Demand outlook: Expects sustained demand supported by government focus on infrastructure and urban/rural development.
• Long-term prospects: Optimistic about medium to long-term prospects and remains focused on delivering growth agenda.