The shares of India’s leading material handling and construction equipment manufacturer rose 11 percent to an all-time high price of Rs 895.35 per share after the business reported 118 percent year-on-year profit growth in the second quarter of FY 23-24.
At 11:55 a.m., Action Construction Equipment Ltd shares were trading at Rs 850.65 a share, up Rs 44.05 or 5.46 percent on the National Stock Exchange, the company has a market capitalization of Rs 10,129 crores.
The company is the world’s largest Pick and carry cranes manufacturer with over 63 percent market share in the Mobile cranes segment in the country and a majority market share of more than 60 percent in the Tower Cranes segment domestically.
The company reported a 38.7 percent increase in revenue year on year, from Rs 497.8 crore in Q2FY23 to Rs 690.2 crore in Q2FY24. During the same period, net profit jumped by 118 percent from Rs 33.9 crore to Rs 73.9 crore.
In comparison to the previous quarter, operational revenue increased by 3.3 percent from Rs 667.9 crore in Q1FY24 to Rs 690.2 crore in Q2FY24, Further net profit has risen by 9.3 percent from Rs 67.6 crore to Rs 73.9 crore. According to the exchange filing.
The company is the largest manufacturer of pick-and-carry cranes. The company is also one of the few players in the manufacturing of Forklifts.
The company’s Export sales contributed 12 percent to the overall Revenues in Q2FY24. The company’s Cranes business revenue grew by nearly 30 percent year on year followed by Agri Equipment of 33 percent.
The company’s Margin expanded by 75 BPS QoQ and 500 BPS YoY driven by a better product mix with improved price realisations and efficient cost-control measures.
Action Construction Equipment Limited (ACE) is engaged in the manufacturing and marketing of Cranes, Construction Equipment, Material Handling, and Agricultural equipment.
As per the latest shareholding pattern, promoters of the company hold a 66.76 percent stake, and Foreign Institutional Investors hold 8.96 domestic institutional investors hold a 2.78 percent stake in the company.
Written by Omkar Chitnis
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