A company’s guidance refers to the practice of providing financial forecasts or projections about their future performance and is typically based on the company’s internal analysis and market conditions and is intended to enhance transparency and build trust with stakeholders, including investors and analysts.
Following are the three companies that have provided strong growth guidance for the financial year 2025.
Action Construction Equipment Limited
Action Construction Equipment (ACE) Limited is engaged in the manufacturing and marketing of hydraulic mobile cranes, mobile tower cranes, crawler cranes, truck-mounted cranes, material handling equipments, road construction equipments and agriculture equipments.
The company reported an increase in consolidated revenue from operations by 36.2 percent YoY from Rs. 613.84 crore in Q4 FY22-23 to Rs. 835.84 crore Q4 FY23-24, accompanied by an increase in net profit by 109 percent from Rs. 47.15 crore to Rs. 98.5 crore, during the same period.
The net profit of the company has grown at a CAGR of 42.41 percent in the last five years from Rs. 56.02 crore in FY18-19 to Rs. 328 crore in FY23-24.
ACE’s Executive Director is optimistic that the year will end with more than a 15-20 percent revenue increase, even though the company anticipated muted growth as a result of the general election and the upcoming monsoon season in the first few months of FY24-25.
ACE has a strong goal to enhance its export portfolio, which drives the company to concentrate on inorganic growth domestically and abroad, along with exploring acquisition opportunities outside the country.
The company is also making significant steps to expand business in the Defence Sector, as it announced in January 2023 that the Ministry of Defence’s (MoD) DRDO has placed an order with ACE for the provision of cranes.
With a market cap of Rs. 17,540 crore, the price of India’s leading material handling and construction equipment manufacturer surged 1.3 percent on BSE to Rs. 1,474.4 on Friday, as against its previous closing price of Rs. 1,454.65.
KPIT Technologies Limited
KPIT Technologies Ltd. is a global partner to the automotive and mobility ecosystem for making software-defined vehicles and reality.
With a market cap of Rs. 40,907.7 crore, the share price of a leading automobile software company surged 0.6 percent on BSE to Rs. 1496.25 on Friday, as against its previous closing price of Rs. 1,487.5.
In terms of financials, the company reported a growth in revenue from operations by 29.5 percent YoY from Rs. 1,017.4 crore in Q4 FY22-23 to Rs. 1,318 crore in Q4 FY22-23, accompanied by a rise in after-tax profit by 48.7 percent from Rs. 111.6 crore to Rs. 166 crore, during the same period.
The company’s goals for FY24-25 are to improve realization with productivity improvement, enhance the people pyramid, optimise cost through a global delivery model, and create competence at scale with a focus on leadership development and AI enablement.
“We start FY25 on a strong footing and expect to deliver CC revenue growth of 18%-22% with EBITDA margins of 20.5%+,” the company’s Co-founder, CEO and Managing Director commented.
Further, KPIT has also mentioned that, in the fiscal year 2025, it would make additional technology investments in related areas, cross-practice offerings, AI adoption, stronger Asia focus, strategic partnerships and collaborations.
Kaynes Technology India Limited
Kaynes Technology India Ltd. is primarily engaged in the design and manufacturing of advanced electronic modules and solutions catering to a broad range of industries.
With a market cap of Rs. 24,063.8 crore, the share price of a leading end-to-end and IoT solutions-enabled integrated electronics manufacturer surged by 1.4 percent on BSE to Rs. 3,771.55 on Friday, as against its previous closing price of Rs. 3,720.65.
In terms of financials, the company reported a growth in revenue from operations by 74.8 percent YoY from Rs. 364.6 crore in Q4 FY22-23 to Rs. 637.3 crore in Q4 FY22-23, accompanied by a rise in after-tax profit by 96.8 percent from Rs. 41.3 crore to Rs. 81.3 crore, during the same period.
For FY24-25, Kaynes Technology expects to clock a similar rate of growth in revenue greater than 60 percent and an improvement in operational EBITDA margin of over 100 basis points.
The company is also anticipating growth in the medical segment to up to triple digits, at least more than Rs. 100 crore in the medical sector.
The company is presently developing an implementation plan for a PCB fabrication facility in Mysore, Karnataka that will produce advanced HDI PCBs, and also plans to expand its manufacturing facilities in Mysore and Manesar as well as set up an OSAT facility at Kongara Kalan, Telangana.
Electric vehicles (EVs), EV components and EV charging infrastructure, railways-train collision prevention systems, high-performance computer servers & hardware, and Aerospace or Outerspace electronics are among the emerging markets that Kaynes is focusing on.
Additionally, it focuses on serving OEMs with in-house test fixtures for reliability, faster turn-around, complex prototypes, zero defects, and upgrading facilities to expand the consumer portfolio and provide full product build services to secure a larger revenue share.
Written by Shivani Singh
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