Record-Breaking Sales and Profits for ACE - Year-Over-Year Income Surges by 14.6% with Widened Profit Margins
Leading Material Handling and Construction Equipment Manufacturer, Action Construction Equipment Limited (ACE), Reports 20% Growth in Q4 FY25 Net Profit
India's foremost manufacturer of material handling and construction equipment, Action Construction Equipment Limited (ACE), has reported a notable 20% increase in consolidated net profit for the fourth quarter of FY25, amounting to Rs. 118.56 crores, surpassing the Q4 FY24 net profit of Rs. 98.45 crores.
The company's revenue from operations saw a 15% surge, reaching Rs. 960.99 crore in Q4 FY25, up from Rs. 835.84 crores in the same period last year. For the entire fiscal year FY25, ACE's net profit experienced approximately 25% growth, reaching Rs. 409.24 crores, compared to Rs. 328.20 crores in FY24. The annual revenue from operations also improved significantly, rising to Rs. 3,427.37 crores from Rs. 2,990.90 crores in the previous financial year.
The board of ACE has recommended a dividend of Rs. 2 per equity share with a face value of Rs. 2 each for FY25.
Speaking about ACE's FY25 performance, Mr. Sorab Agarwal, Executive Director at ACE, stated, "India continues to be the fastest-growing major economy. Despite global uncertainties, the country's GDP is projected to grow at a steady pace of around 6.5%. This steady growth is built on strong macroeconomic fundamentals including easing inflation and a favorable monetary stance by the Reserve Bank of India.
Resilient domestic consumption, coupled with the government's sustained emphasis on capital expenditure, remains a key driver of economic growth. However, external risks persist in the form of rising trade barriers, disrupted global supply chains, and ongoing geopolitical tensions.
India is now positioned as the world's fourth-largest economy. Our robust industrial capabilities, skilled workforce, and rapidly advancing infrastructure place us in an excellent position to cater to global demand with both efficiency and excellence."
In the current financial year, ACE has not only consolidated its position as a market leader in the Indian Crane industry, but its cranes, material handling, and construction equipment segment has also surpassed the Rs. 3,090 crore mark, registering a growth of 15.55%. Both the value and volume of equipment sold have shown an increase, with the numbers for cranes, material handling, and construction equipment rising by 14.75% from 11,643 in FY24 to 13,360 in FY25. In this segment, ACE has managed to grow its profits by 35.36%, with a margin expansion of 18.26% compared to 15.58% for the last year. The Agri division contributed revenue of around Rs. 230 crores with margins at 3.73%.
One of the significant achievements in the recent quarter went to ACE, as it was awarded its single largest order till date, valued at Rs. 420 Crores to deliver 1,121 Rough Terrain Fork Lift Trucks (Telehandlers) to the Indian armed forces. This order marks a pivotal step towards modernizing India's Defence infrastructure and encouraging indigenous manufacturing.
ACE's relentless innovation and commitment towards developing new products enable the company to deliver specialized equipment under the government's "AtmaNirbhar Bharat" and "Make in India" initiatives.
The noteworthy growth in ACE's net profit can be attributed to the strengthening Indian economy, as the country is projected to maintain a steady GDP growth of around 6.5%.
The company's success is also rooted in the government's sustained focus on capital expenditure, which bolsters domestic consumption and drives economic growth.
With India's robust industrial capabilities, skilled workforce, and rapidly advancing infrastructure, ACE are well-positioned to cater to global demand in areas such as finance, business, technology, and the industry, ensuring efficiency and excellence in their offerings.
