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Action Construction Equipment Annual Report 2023 Summary

Updated: Oct 1, 2023

  • The company specializes in producing and promoting a range of products, including Hydraulic Mobile Cranes, Mobile Tower Cranes, Crawler Cranes, Truck Mounted Cranes, Material Handling Equipment like Forklifts, Road Construction Equipment such as Backhoe loaders, Compactors, Motor graders, and Agricultural Equipment including Tractors, Harvesters, and Rotavators. Its manufacturing facilities are located in Haryana.

  • In the fiscal year 2022-2023, the company achieved remarkable success across all business sectors, recording record-breaking profits.

  • At a consolidated level compared to FY22, the total Income grew by 34% to INR 2,201 Crores, EBITDA grew by 62% to INR 262 Crores and Profit after Tax grew by 65% to INR 173 Crores.

  • The company's focus on infrastructure and investment aligns with India's 25-year development plan.

  • The company is boosting exports of tractors, cranes, and construction equipment and entering new markets with its products. It aims to expand exports due to rising global demand, especially in defense, Agri-business and construction.

  • With the expected economic growth of India in the coming years, the Company is on the cusp of a multi-year growth cycle. The Company has made significant strides in recent years to strengthen the operations, product mix, procedures, and controls that make up the foundation of its business.

  • In 2023, the Indian crane market held a value of USD 1.02 billion, projected to grow to USD 1.25 billion by 2027, with a Compound Annual Growth Rate (CAGR) exceeding 5.3% within the forecast period of 2023 to 2027.

  • ACE is well-positioned to benefit from India's emphasis on infrastructure and electrification, especially with the introduction of fully electric mobile cranes.

  • Agriculture's importance in India further boosts ACE's growth potential.

  • However, challenges include project management risks, economic slowdowns, raw material price volatility, funding limitations, market demand fluctuations, and competition.

  • Ongoing real estate growth fuels the CE industry, with India's construction equipment market expected to triple in a decade due to infrastructure investments. Partnerships with foreign firms can boost ACE's R&D and technology innovation.

  • Company operates mainly in four segments i.e. Cranes, Construction Equipment, Material Handling and Agri Equipment.

  • Segment Wise Revenue

  • Cranes Segment: Revenues: ₹1527.85 crores (38.39% growth). EBIT: ₹195.08 crores (52.56% growth).

  • Construction Equipment Segment: Revenues: ₹249.46 crores (41.55% growth).EBIT: ₹23.51 crores (150.64% growth).

  • Material Handling Segment: Revenues: ₹169.14 crores (11.23% growth). EBIT: ₹20.85 crores (14.56% growth).

  • Agri Equipment Segment: Revenues: ₹211.54 crores (6.82% growth). EBIT: ₹5.41 crores (-57.00% change).

  • The dedicated focus on fostering a transformative work culture yielded substantial outcomes, as there were no instances of production loss in FY2022-23.

  • The FY24 budget of the Indian government allocates a record ₹10 lakh crore for capital expenditure, while capex spending has risen to 3.3% of GDP from 1.7%. With structural reforms and increased capital expenditure, India's GDP is expected to achieve a robust CAGR of about 6.6% between FY23 and FY30, the strongest growth since FY10.

  • In FY23, India's construction equipment industry grew by 26%, driven by infrastructure and railway demand, surpassing 100,000 unit sales. The Indian Construction Equipment Market is valued at USD 7.9 billion in 2023, projected to reach USD 12.4 billion by 2029, with an 8.9% CAGR.



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