Action Construction Equipment Limited · NSE:ACE
Action Construction Equipment — Investor Presentation (March 2023)
50 slides from Action Construction Equipment's investor presentation, Mar 2, 2023
Slide 1: Regulation 30 filing cover letter
Action Construction Equipment Limited Corporate & Registered Office Dudhola Link Road, Dudhola, Distt. Palwal-121102, Haryana, India Date: March 02, 2023 To, The Manager Listing BSE Limited Scrip Code: 532762 5th Floor, P.J. Towers, Dalal Street, Mumbai-400001 The Manager Listing National Stock Exch
Slide 2: Corporate Presentation March 2023
Corporate Presentation March 2023
Slide 3: Table of Contents
Table of Contents I. ACE at a Glance III. Growth Drivers Sectoral Growth Drivers Evolving Opportunities II. Company Overview - Defence Sector Product Portfolio - Export Sector Manufacturing Facilities Indian and Global Presence IV. Business Overview Clientele Cranes ` R&D and Training Construction E
Slide 4: At a Glance
At a Glance Established Brand with over 27 years of Operating across Infrastructure, Construction, Industry Presence Manufacturing, Logistics and Agri sectors India’s most diversified Construction Equipment One of the world’s largest Pick & Carry Crane Manufacturer Manufacturer Pan India and Global
Slide 5: Company Overview
Company Overview
Slide 6: Company Overview
Company Overview • ACTION CONSTRUCTION EQUIPMENT LIMITED was established in 1995 by Mr. Consolidated Financial Highlights (INR Mn) Vijay Agarwal, a technocrat, who has over 50 years of industry experience and is 16,404 15,838 run by a team of experienced professionals. 11,603 12,425 • ACE is an esta
Slide 7: Product Portfolio
Product Portfolio Cranes Pick & Carry Crane Lorry Loaders Crane Self Erecting Tower Crane Crawler Crane Truck Crane Tower Crane Construction Equipment Backhoe Loader Wheel Loader Soil Compactor & Tandem Vibratory Roller Motor Grader Material Handling Equipment Forklift Trucks Warehousing Equipment P
Slide 8: Board of Directors
Board of Directors Mr. Vijay Agarwal - Chairman & Managing Director Mr. Avinash Parkash Gandhi - Independent Director He is the promoter, Chairman & Managing Director of the Company. Mr. Agarwal is having over 50 He holds a Bachelor's Degree in Mechanical Engineering from Birla Institute of Technolo
Slide 9: Highly Experienced Management Team
Highly Experienced Management Team Rajan Luthra – CFO Manish Mathur – CEO – Cranes and Construction Equipment Joined in June’2010 as Chief Financial Officer Joined ACE in 1997 and under his leadership, ACE has been a dominant market leader in Experience: 38 years in companies such as ABB, Talbros Au
Slide 10: Manufacturing Facilities
Manufacturing Facilities State-of-the-art production facilities based in the industrial townships of NCR, Haryana with a capacity Total Capacity (Units) to produce around 12,000 construction equipment and 9,000 Tractors annually. Agriculture Equipment Cranes Agriculture Cranes Equipment 9,000 9,000
Slide 11: Manufacturing Facilities
Manufacturing Facilities Engine Transmission Dudhola Plant Engine Assembly Machine Shop Fabrication Unit and Weld Shop Paint Line Spare Parts 10
Slide 12: Domestic Presence
Domestic Presence ACE has all India Sales and Service network operating out of all the major cities. Construction equipment dealer network in over 100 locations More than 200 Agri dealers across the country These outlets are further supported by company officials based at Delhi, Mumbai, Chennai, Kol
Slide 13: Global Presence
Global Presence Russia Ukraine Kazakhstan Mongolia Turkey Azerbijan Malta Afghanistan Tunisia Iraq Nepal Bhutan Kuwait Saudi Arabia India Myanmar Mexico Bangladesh St. Lucia Oman Thailand Ghana Sudan Yemen Veitnam Venezuela Cameroon Ivory Coast Kenya Pap New Guinea Ecuador D R Congo Tanzania Bolivia
Slide 14: Clientele
Clientele Infra Players Manufacturing Sector Government Sector 13
Slide 15: Strong R&D and Training Capabilities
Strong R&D and Training Capabilities ACE puts strong emphasis on Research and Development. Its R&D Centres at Faridabad and Palwal are recognised by DSIR – Government of India and perform the following activities R&D Center • Catalyse tech upgradation to meet International Standards of Safety and Qu
Slide 16: Journey and Key Milestones
Journey and Key Milestones 2019 2007 2013 • Introduced NX Series Cranes, 55-60 Ton • Introduced Forklift Trucks • Introduced In-house Engine Plant and Truck Cranes and Next-gen Backhoe • Received CE Certification Track Combine Loaders 1995 • Fastest Growing CE Company – CW- 2014 2020 • Company Incor
Slide 17: Recent Awards
Recent Awards Transformative Trailblazing Leader India’s 20 Most Impactful Innovative Construction Equipment Best Seller in Mobile Cranes India’s Top Challengers The Economic Times ACE Bags "Best Company in Best Company of the Business Leader of the Mr. Vijay Agarwal Power Brands 2022-203 for Multi-
Slide 18: ACE Sustainability Framework
ACE Sustainability Framework SOCIAL • ACE Free Emergency Response Service • Subsidized Food Facility for ENVIRONMENT Needy • Installation of Rainwater • Subsidized Pathology Harvesting System Laboratory Services for Below Poverty Line Families • Installation of 1.8 MW Solar Power Plant at the • Trai
Slide 19: ACE Edge
ACE Edge Established Brand with over 27 years of Industry High Operational Efficiency with Low Fixed Cost presence Low Leverage with a Credit Rating of AA- (Stable)/A1+ by ICRA Flexibility and Quick Change Adaptation Customer Relationships with In-depth Market Intelligence Highly Experienced and Pro
Slide 20: Growth Drivers
ACE | Growth Drivers
Slide 21: Sectoral Growth Drivers
Sectoral Growth Drivers • The Centre has allocated INR 10,00,000 Crs capital investment, a steep increase of 33% for third year in a row, to enhance growth potential of the country. • Investment of INR 75,000 Crs, for one hundred critical transport infrastructure projects, for last and first mile La
Slide 22: Sectoral Growth Drivers
Sectoral Growth Drivers • In the 2023-24 Union Budget, Ministry of Agriculture and Farmers' Welfare has been allocated INR 1,25,000 Crs. The government has given a clear signal to rural India that it is committed to their cause. • Indian tractor market stands at ~8,00,000 units and is anticipated to
Slide 23: Evolving Opportunities
Evolving Opportunities Increased Export Revenue coupled with opportunities in Defence Sector, and increasing utilisation levels of Construction Equipment and Agri business are moving the Company towards counter cyclical domain. • Indian Defence : Customised Cranes, Forklifts, Skid Steer Loaders, Mul
Slide 24: Evolving Opportunities – Defence Sector
Evolving Opportunities – Defence Sector 23
Slide 25: Evolving Opportunities - Exports
Evolving Opportunities - Exports Forma Range of Tractors Backhoe Loader – Phantom 4x4 ACE intends to increase the contribution of exports in total revenues to a significant share over the next 2-3 years Accordingly, ACE launched Forma Range of Tractors and Backhoe Loader “Phantom 4x4”, especially de
Slide 26: New Product Launches
New Product Launches India’s Largest indigenous crane with a lifting capacity of 180 tons launched by Mr. Nitin Gadkari, Hon’ble Minister of Road Transport and Highways 25
Slide 27: New Product Launch: India’s First Fully Electric Mobile Crane
New Product Launch: India’s First Fully Electric Mobile Crane India’s First Electric Construction Equipment / India’s First Electric Crane 26
Slide 28: New Product Launch: India’s First Fully Electric Mobile Crane
New Product Launch: India’s First Fully Electric Mobile Crane 27
Slide 29: New Product Launch: India’s Largest Indigenous Crane
New Product Launch: India’s Largest Indigenous Crane India’s Largest Mobile Crane - 180 Tons Crawler Crane 28
Slide 30: New Product Launch: 35 Tons 4X4 Next-Gen Crane
New Product Launch: 35 Tons 4X4 Next-Gen Crane 29
Slide 31: New Product Launch: India’s First AWP
New Product Launch: India’s First AWP India’s First Self Propelled AWP ( Aerial Access Platform ) 30
Slide 32: New Product Launch: Range of Telehandlers
New Product Launch: Range of Telehandlers Telehandler ( 2 / 3 Tons ) 31
Slide 33: Business Overview
Business Overview
Slide 34: Cranes
Cranes Pick & Carry Cranes • Market leader – 63% market share • Versatile equipment and are used for a wide range of lifting needs, both on and off roads • High quality offering with equitable pricing • Capacity class: 9 Tons to 30 Tons Average Selling Price: INR ~18 lacs • Sectors: Infrastructure,
Slide 35: Cranes
Cranes Fixed Tower Cranes • Market Leader – 63% + market share • Application: Lifting, shifting, concreting and erection jobs at civil construction sites • Capacity Class: 5 Tons to 25 Tons (Lifting Heights: up to 300 meters) • Sectors: Infrastructure, Construction (especially Real Estate) Average S
Slide 36: Innovations
Innovations NXP Series – Multi Activity Cranes NX 3600 Series – Multi Activity Cranes FP-210 – Piling Crane • 2 Applications in Price of one machine • 2 Applications in Price of one machine • 2 in 1 Crane • Manlift cum Pick N Carry • Slew Crane cum Pick N Carry • Works as Pick & Carry Crane and can
Slide 37: Industry Overview
Industry Overview Cranes Crane Units (000’s)* • Asia Pacific Crane market is projected to register the highest CAGR from 2020 to 2027 owing to growing 3X construction activities in emerging economies, such as China, India, and the Philippines. • Key factors driving the demand mobile cranes market is
Slide 38: Construction Equipment
Construction Equipment Backhoe Loaders • Used for digging, moving, grading and loading earth and other loose aggregates • Backhoe Loaders come in both 2WD / 4WD configurations Average Selling Price: INR ~19 lacs • Cost effective, rugged and reliable • Sectors: Infrastructure, Construction, Mining, M
Slide 39: Industry Overview
Industry Overview Construction Equipment Indian Construction Equipment Industry Units (000’s) • Key factors driving the growth in Construction Equipment market is the rising investments in 3X infrastructure development. 10%^ 250 • The growing population in emerging economies such as India has result
Slide 40: Material Handling Equipment
Material Handling Equipment Forklift • India’s leading Forklift Manufacturer. • ~ 19% market share. • Capacity Class: • Diesel Forklift - 1.5 Tons to 35 Tons • Electric Forklift 1.5 Tons to 8 Tons Average Selling Price: INR 9~10 lacs • LPG Forklift – 2 Tons to 5 Tons • In collaboration with Doosan -
Slide 41: Industry Overview
Industry Overview Material Handling Equipment • GDP growth, manufacturing expansion and mechanisation to enhance the market size. • Increased investments in Logistics and Warehousing activities to drive sales. • Manufacturing sector with US$ 1 trillion potential by 2025 will be another major driver
Slide 42: Agricultural Equipment
Agricultural Equipment Tractor • Used for agricultural activities, and also for construction and industrial haulage • Capacity Class: 35 HP to 90 HP (in both 2WD / 4WD configurations) • Around 200 dealers for tractor across India • Started with states such as Haryana, Uttar Pradesh, Rajasthan and Pu
Slide 43: Industry Overview
Industry Overview Agricultural Equipment • India is one of the largest tractor markets in the world, selling ~ 8,00,000 tractors per annum on average and the Indian tractors market is projected to witness a CAGR 4.5% between 2020 and 2025. • Government initiatives regarding rural development and far
Slide 44: Financial Overview
ACE Financial Overview
Slide 45: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Particulars (INR Mn) FY20 FY21 FY22 9M-FY23^ Total Income* 11,603 12,425 16,404 15,838 Total Expenses 10,646 11,083 14,782 13,982 EBITDA 957 1,342 1,622 1,856 EBITDA Margins (%) 8.25% 10.80% 9.89% 11.72% Depreciation 130 139 154 130 Finance Cost 147 122
Slide 46: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equities & Liabilities (INR Mn) FY21 FY22 H1-FY23 Assets (INR Mn) FY21 FY22 H1-FY23 (A) Share Capital 227 238 238 (A) Property plant & Equipment 4,161 4,355 4,314 (B) Other Equity 5,005 7,303 7,961 (B) Capital Work in Progress 126 243 347 Non Controlling Interes
Slide 47: Key Consolidated Financial Highlights
Key Consolidated Financial Highlights Total Income* (INR Mn) EBITDA and EBITDA Margins (INR Mn) PAT and PAT Margins (INR Mn) 16,404 1,856 1,258 15,838 1,622 1,050 11,603 12,425 1,342 798 957 10.80% 11.72% 525 7.94% 9.89% 6.40% 8.25% 6.42% 4.52% FY20 FY21 FY22 9M-FY23 FY20 FY21 FY22 9M-FY23^ FY20 FY2
Slide 48: Capital Market Data
Capital Market Data Stock Market Performance (as on 31st December, 2022) 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 ACE Sensex Price Data (As on 31st December, 2022) Shareholding Holding pattern (As on 31st December,
Slide 49: Disclaimer
Disclamier Action Construction Equipment Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are
Slide 50: THANK YOU
THANK YOU
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