- 22 May 2024
- ICICI Securities
Strong operational performance continues
ACE - 1291 Change: 26.15 (2.07 %)News: Revenue increased by 36.2% YoY (+11% QoQ) to Rs 835.8 crore, primarily led by strong growth in cranes and construction equipment segments. Revenue for cranes segment (72% of total) increased by 48.9% YoY, led by ~45% YoY volume growth. Construction equipments segment (13% of total) revenue is up 18.2% YoY, led by ~26% YoY volume growth. Material handling (6% of total) segment revenue declined by 4.2% YoY due to lower realisations (as volume was up ~12% YoY). Agri equipments revenue (8% of total) declined 10.1% YoY on lower volumes. EBIDTA margin improved to 15.5% (+358 bps YoY, +187 bps QoQ), led by positive operating leverage (EBIT margin of cranes segment improved 313 bps YoY respectively). Subsequently, EBIDTA increased by 76.9% YoY (+26.2% QoQ) to Rs 129.7 crore. PAT increased by 108.8% YoY (+11.6% QoQ) to Rs 98.5 crore. For FY24, revenue is up 34.9% YoY to Rs 2913.8 crore (led by strong growth in cranes and construction equipments) with EBITDA margin stands at 13.8% (vs 10.2% in FY23).
Views: ACE continues to report strong operational performance during the quarter led by robust volume growth in key segments (cranes and construction equipments) and substantial improvement in margins. Going ahead, overall demand for company’s products to remain healthy led by robust capex scenario across infra and industrial segments. Company continues to focus on gaining overall market share in both domestic & export markets with growing reach to more sectors and expanding product portfolio. We believe company will continue to see strong revenue growth in coming periods too with further expansion in margins.
Impact: Positive