Action Construction Equipment Limited

Corporate & Registered Office

Dudhola Link Road, Dudhola, Distt. Palwal-121102, Haryana, India

Date: May 21, 2024

To,

The Manager Listing

BSE LimitedScrip Code: 532762 5th Floor, P.J. Towers,

Dalal Street, Mumbai-400001

The Manager Listing

National Stock Exchange of India Ltd.CM Quote: ACE

Exchange Plaza, Bandra Kurla Complex,

Bandra (E),

Mumbai-400051

Subject: Earnings presentation-Q4-FY24/FY24

Dear Sir/Madam,

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed herewith, earnings presentation (Q4-FY24/FY24) of the Company.

Kindly take the above in your record.

Thanking you

Yours faithfully

For Action Construction Equipment Limited

ANIL Digitally signed by ANIL KUMAR KUMARDate: 2024.05.22 00:00:12 +05'30'

Anil Kumar

Company Secretary

Corporate Office: Phone: +91-1275-280111 (50 Lines), Fax: +91-1275-280133,E-mail:works2@ace-cranes.com

Mktg. H.Q.: 4th Floor, Pinnacle, Surajkund, Faridabad, NCR-121009, Phone: +91-129-4550000 (100 Lines), Fax: +91-129-4550022, Email: marketing@ace-

cranes.com Customer Care No.:1800 1800 004 (Toll Free), CIN: L74899HR1995PLC053860, Website: www.ace-cranes.com

EARNINGS PRESENTATION

Q4-FY24/FY24

At a Glance

Established Brand with over 29 years of

Industry Presence

World's largest Pick & Carry Crane Manufacturer with Pan India and Global Presence in over 37 Countries

Value for Money Equipment with Focus on Quality and Reliability

Strong Manufacturing, R&D Capabilities

providing Customized Solutions for

Specific Requirements

Highly Experienced and

Professional Team

India's most diversified CE Manufacturer

Operating across Infra, Construction,

Manufacturing, Logistics and Agri sectors

Customer Centric Organization with In-depth Market Intelligence having 20,000+ strong Customer base

Fastest Service and Product Support through a wide Network across 100+ Locations in India

Strong Financial Discipline with Sharp focus on Accelerated Growth through Flexibility and Quick Change Adaptation

Poised to capture Significant Growth

Prospects in Indian Manufacturing &

Infrastructure Sector

2

Company Overviewompany Overview

    • ACTION CONSTRUCTION EQUIPMENT LIMITED was established in 1995 by Mr. Vijay Agarwal, a technocrat, who has over 50 years of industry experience and is run by a team of experienced professionals.
  • ACE is an established and reputed brand with a significant presence across diversified sectors like Construction, Infrastructure, Manufacturing, Logistics and Agriculture.

Market Leader in Mobile and Tower Cranes

63% +

Market Share

Consolidated Financial Highlights (INR Mn)

10.80%

22,008

29,909

16.06%

16,404

11.91%

12,425

9.89%

2,621

4,803

1,342

1,622

FY21

FY22

FY23 ^

FY24

Total Income*

EBITDA

EBITDA Margin (%)

Consolidated Segmental Revenue - FY24 (%)

The company is the world's largest Pick & Carry cranes manufacturer with over 63% market share in

the Mobile cranes segment in the country and a majority market share of more than 60% in Tower

Cranes segment domestically.

Additionally, ACE also offers Crawler Cranes, Truck Mounted Cranes, Lorry Loaders, Backhoe

Loaders/Loaders, Vibratory Rollers, Motor Graders, Forklifts, Tractors & Harvesters and other

Construction Equipment.

The company has one of the widest Sales and Service network, with over 100+ locations supported

Cranes

72%

Agriculture

Construction

Equipment

13%

Material

Equipment

Handling

by 13 regional offices in India and also exports to over 37 countries across Middle East, Africa, Asia

and Latin America.

8%

7%

* Total Income includes Other Income

3

Product Portfolio

Cranes

Pick & Carry Cranes

Lorry Loaders

Rough Terrain Cranes

Crawler Cranes

Truck Cranes

Tower Cranes

Construction

Equipment

Backhoe Loaders

Tele Handlers

Vibratory Rollers

Motor Graders

Access Platforms

Material

Handling

Equipment

Forklift Trucks

Warehousing Equipment

Piling Rigs

Agri

Equipment

Tractors

Track Harvesters

4

Sectoral Growth Drivers

Urban Infra

Railways

Manufacturing

  • Total Capex outlay increased by 11.1% to approx. INR11.11 lakh crores in FY25 interim budget; major outlay for

roads at INR 2.72lakh crore and railways at INR2.52 lakh crore.

Launch of PM Gati

Investment of INR 75,000 Crs, for one hundred critical transport infrastructure projects, for last and first mile

connectivity for ports, coal, steel, fertilizer, and food grains sectors.

Shakti Plan, a INR 100

Urban Infrastructure Development Fund (UIDF) will be established through use of priority Sector Lending shortfall,

which will be managed by the national Housing Bank, and will be used by public agencies to create urban

lakh Crs national

infrastructure in Tier 2 and Tier 3 cities.

Allocation of INR 10,400 Crs towards investment in Smart Cities Mission for FY24.

infrastructure master

Implementation of three major economic railway corridor programs and Expansion of Metro Rail and NaMo

plan, building a

Bharat to be supported in large cities, focusing on transit-oriented development.

400 new Vande Bharat trains to be developed in the next three years and 'One Station-One Product' to help

foundation for

local businesses and supply chains

Construction of Dedicated New line projects will be getting an allocation of INR 31,850 Crs and National High

holistic

Speed Rail Corporation Limited will be allocated INR 40,184 Crs.

The Manufacturing sector of India has the potential to reach US$ 1 Tn by 2025.

infrastructure.

  • PLI in 14 sectors for achieving the vision of 'Atmanirbhar Bharat' with the potential to have additional production of INR 3,00,000 Crs during next 5 years.
  • Industrial Capex cycle has revived owing to other initiatives such as 'Vocal for Local' and 'China +1 Strategy.'
  • As per Budget 2023-24 Expansion of the National Highways network by 14,000 km in FY24, INR 20,000 Crs to be mobilised through innovative ways of financing.
  • The roads sector is likely to account for 18% capital expenditure over FY 2019-25 and Roads worth $200 Bn to be built in next 2 years.
  • NHAI is coming up with 23 new highways including network of expressways and economic corridors by March 2025.
  • The Central Government awarded a total of 322 projects to construct more than 13,000 km roads under the 'Bharatmala Pariyojana' and 3.71 lakh

Roads

Housing

kms under the PMGSY.

  • Outlay for PM Awas Yojana is being enhanced by 66% to over INR 80,671 Crs.
  • Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 and contribute 13% to the country's GDP by 2025.
  • Retail, hospitality, and commercial real estate are also growing significantly, providing the much-needed infrastructure for India's growing needs.
  • Housing scheme for middle income class who are currently renting premises to enable them to buy or build their own houses coupled with 2 crore additional houses to be built under the Pradhan Mantri Awas Yojana (Grameen) will offer a significant boost to construction activities

Source: ICEMA, IBEF, Mordor Intelligence, Indian Companies.in, Business Standard

5

Sectoral Growth Drivers

Agriculture

Logistics

Warehousing

  • In the 2024-25 Union Budget, Ministry of Agriculture and Farmers' Welfare has been allocated INR 1,27,000 Crs. The government has given a clear signal to rural India that it is committed to their cause.
  • Indian tractor market stands at ~9,45,000 units and the Indian agricultural tractor market is anticipated to grow at a CAGR of 8.9% over the forecast period 2022-2027.
  • Budgetary allocation to Rural Development, Irrigation Projects and Subsidies coupled with credit availability will induce increased demand.
  • 5 Multimodal Logistics Parks at four locations through PPP mode contracts to be awarded in FY24.
  • The government had decided to set up as many as 35 Multi Modal Logistics Parks, at a total capital cost of INR 50,000 crore.
  • One hundred PM Gati Shakti Cargo Terminals for multimodal logistics facilities will be developed till 2025.
  • The logistics market in India is forecasted to grow at a CAGR of 10.5% between 2019 and 2025.
  • The deeper penetration into Tier II, III & IV towns and the National Logistics Policy promise an efficient and integrated logistics industry in coming years.
  • Supportive Government policies such as establishment of logistic parks and free trade warehouse zones is expected to spur the market growth through 2025.
  • 30 Mn square ft of warehousing space is expected to be added to the existing 86 Mn square ft in 2023.
  • Indian warehousing and logistics sector is expected to attract ~$10 Bn investments over the next 4-5 years.

The Government of India has allocated US$ 1.4 Tn under the National Infrastructure Pipeline for

FY 2019-25.

Airports

Ports

  • 200 low cost airports being built in next 20 years.
  • India's aviation industry is expected to witness INR 35,000 Crs (US$ 4.99 Bn) investment in the upcoming years.
  • 50 additional airports, heliports, water aerodromes and advance landing grounds will be revived for improving regional air connectivity.
  • The Indian Government is planning to invest US$ 1.83 Bn for development of airport infrastructure along with aviation navigation services by 2026.
  • The Ministry of Ports, Shipping and Waterways aims to complete projects worth INR 2,00,000 Crs in the next financial year under the Sagarmala Programme.
  • The Government has included 1,537 projects under the ambitious Sagarmala Programme at a cost of INR 6,50,000 Crs.
  • Projects worth INR 13,308.41 Crs were awarded in the last three years on upgradation of the major ports.

Source: ICEMA, IBEF, Mordor Intelligence, Indian Companies.in, The Hindu

6

FINANCIAL OVERVIEW Q4-FY24 / FY24

7

Q4-FY24 Financial & Operational Highlights

Q4-FY24 Financial Highlights (Consolidated)

INR 8,568 Mn

INR 1,506 Mn

17.58%

Total Income*

EBITDA

EBITDA Margin

INR 985 Mn

11.50 %

INR 8.27/Share

PAT

PAT Margin

Diluted EPS

FY-24 Financial Highlights (Consolidated)

INR 29,909 Mn

INR 4,803 Mn

16.06%

Total Income*

EBITDA

EBITDA Margin

INR 3,282 Mn

10.97%

INR 27.56/Share

PAT

PAT Margin

Diluted EPS

Q4-FY24 Operational Highlights

  • Highest ever Quarterly & Yearly Revenue and Margins in the history of the Company.
  • Sustained growth trajectory : Operational revenue grew by 36% on a YoY basis and 11% on QoQ basis.
  • Margin expansion : Driven by better capacity utilizations, product mix, improved price realizations along with efficient cost control measures and softening of commodity prices.
  • EBIDTA expands by 520 bps, PBT expands by 453 bps, PAT increases by 387 bps on YoY basis.
  • Strong Revenue growth across segments during the year:
    1. Cranes grew by 37.75% YoY
    2. Construction Equipment Segment grew by 54.82% YoY
    3. Material Handling segment grew by 8.6% YoY
    4. Agri segment grew by 12.06% YoY
    5. Expansion of Global footprint : 72 % YoY export sales increase

Going forward, in the first few months of FY25, muted growth is anticipated due to the general election and upcoming monsoon season. At the current juncture, 15-20% revenue growth expected for FY 25.

*Total Income includes Other Income

8

Segment wise - Quarterly Sales Volume

Cranes

Construction Equipment

2,835

304

274

2,320

242

1,957

Q4-FY23

Q3-FY24

Q4-FY24

Q4-FY23

Q3-FY24

Q4-FY24

Material Handling Equipment

Agriculture Equipment

407

419

375

813

817

550

Q4-FY23

Q3-FY23

Q4-FY24

Q4-FY23

Q3-FY24

Q4-FY24

9

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Action Construction Equipment Limited published this content on 22 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 May 2024 11:10:08 UTC.