Action Construction Equipment Limited · NSE:ACE
Action Construction Equipment — Investor Presentation (August 2021)
37 slides from Action Construction Equipment's investor presentation, Aug 6, 2021
Slide 1: Cover letter to stock exchanges
Action Construction Equipment Ltd. Corporate & Regd. Office Dudhola Link Road, Dudhola, Distt. Palwal - 121102, Haryana, India 'Date: August 06, 2021 To, The Manager Listing BSE Limited Scrip Code: 532762 5th Floor, P.J. Towers, Dalal Street, Mumbai-40000 1 The Manager Listing National Stock Exchang
Slide 2: Investor Presentation August 2021
Investor Presentation August 2021
Slide 3: At a Glance
At a Glance Established Brand with over 25 years of Operating across Infrastructure, Construction, Industry Presence Manufacturing, Logistics and Agri sectors India’s most diversified Construction Equipment World’s largest Pick & Carry Crane Manufacturer Manufacturer Pan India and Global Presence in
Slide 4: Company Overview
Company Overview
Slide 5: Company Overview
Company Overview • ACTION CONSTRUCTION EQUIPMENT LIMITED was established in 1995 by a Financial Highlights (INR Mn) technocrat, Mr. Vijay Agarwal who has over 50 years of industry experience and is run by a team of experienced professionals. 13,522 12,425 11,603 10.80% 10.06% • ACE is an established
Slide 6: 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 Forklift Trucks Warehousing Equipment Piling Rig
Slide 7: 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 9000 9000 Cranes 1800 1500 Material Const
Slide 8: Manufacturing Facilities
Manufacturing Facilities Engine Transmission Dudhola Plant Engine Assembly Machine Shop Fabrication Unit and Weld Shop Paint Line Spare Parts 7
Slide 9: Domestic & Global Presence
Domestic & Global Presence Tunisia Iraq Afghanistan Nepal Bhutan Egypt Saudi Arabia India Myanmar Mexico Bangladesh Nigeria Oman Sudan Yemen Burkina Uganda Kenya Faso Tanzania Indonesia Bolivia Zimbabwe South Africa Argentina Works Construction equipment dealer network in over 100 locations Regional
Slide 10: Clientele
Clientele Key Infra Players Manufacturing Sector Government Sector 9
Slide 11: Strong R&D and Training Backbone
Strong R&D and Training Backbone 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 Qualit
Slide 12: 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 13: Key Management Personnel
Key Management Personnel Rajan Luthra – CFO Manish Mathur – CEO – Cranes His qualifications are ICWA, Company Secretary, and Post Graduate Diploma in Personnel He is an alumnus of premier institute MNIT, Allahabad (formerly known as MNREC). In his Management from Faculty of Management Studies, Delhi
Slide 14: Our Journey
Our Journey 2019 • Introduced 2007 2013 NX Series • Introduced • Started 2017 Cranes Forklift in-house • Introduced • Introduced Trucks 2011 Engine Plant range of 55-60 Tons 1995 • Accorded CE 2009 • In house • Initiated Tractors up Truck • Company certification • Introduced Manufacturing Ambulance
Slide 15: Recent Awards
Recent Awards ACE Bags "Best Company in Best Company of the Business Leader of the Outstanding Employee Most Innovative HR Award North India Best Employer Bestseller in Mobile Cranes- Person of the Year Excellence in Engineering Cranes & Tower Cranes“ Year 2020 Award Year 2020 Award Engagement Award
Slide 16: Sector Overview
3 ~ |Sector Overview
Slide 17: Sectoral Growth Drivers
Sectoral Growth Drivers • Upcoming Metro Projects across all major cities. • Development of City Roads, Bridges, Flyovers, Elevated Road Corridors, Water Sewerage, Transmission Lines and Distribution Infrastructure etc. The Government of • 100 Smart Cities being developed and rejuvenation of 500 oth
Slide 18: Sectoral Growth Drivers
Sectoral Growth Drivers • Indian tractor market stands at ~8,00,000 units and is anticipated to grow at a CAGR of 4.5% over the next five years owing to increase in demand for mechanization in agriculture & logistics industry. • Budgetary allocation to Rural Development, Irrigation Projects and Subs
Slide 19: ACE Edge
ACE Edge Established and Strong Brand High Operational Efficiency with Low Fixed Cost Flexibility and Quick Change Adaptation Low Leverage with a Credit Rating of AA- (Stable)/A1+ by ICRA Highly Experienced and Professional Team Customer Relationships with In-depth Market Intelligence Rugged Product
Slide 20: Business Overview
Business Overview
Slide 21: 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 ~14 lacs • Sectors: Infrastructure,
Slide 22: Cranes
Cranes Fixed Tower Cranes • Market Leader – 60% market share • For 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 Selling Pric
Slide 23: Industry Overview: Cranes
Industry Overview Cranes Crane Units (000’s)* • Asia Pacific is projected to register the highest CAGR from 2020 to 2027 owing to growing construction 3X activities in emerging economies, such as China, India, and the Philippines. • Key factors driving the growth in Mobile Cranes market is the risin
Slide 24: 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 ~17 lacs • Cost effective, rugged and reliable • Sectors: Infrastructure, Construction, Mining, M
Slide 25: Industry Overview: Construction Equipment
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 250 • The growing population in emerging economies such as India has resulted in
Slide 26: 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 8~9 lacs • LPG Forklift – 2 Tons to 5 Tons • In collaboration with Doosan -
Slide 27: Industry Overview: Material Handling Equipment
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 Dollar potential by 2025 will be another major d
Slide 28: 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 29: Industry Overview: Agricultural Equipment
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% over 2020-2025. • Government initiatives regarding rural development and farm mecha
Slide 30: 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 • Replaces fuel consumption and work • Manlift cum Pick N Carry • Slew Crane cum Pick N Carry of 2 machines. •
Slide 31: 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 32: Financial Overview
ACE Financial Overview
Slide 33: Historical Income Statement (IND-AS)
Historical Income Statement (IND-AS) Particulars (INR Mn) FY19 FY20 FY21 Q1-FY22 Total Income* 13,522 11,603 12,425 3,239 Total Expenses 12,447 10,646 11,083 2,913 EBITDA 1075 957 1,342 326 EBITDA Margin (%) 7.95% 8.25% 10.80% 10.06% Depreciation 118 130 139 37 Finance Cost 115 147 122 27 PBT 842 68
Slide 34: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equities & Liabilities (INR Mn) FY20 FY21 Assets (INR Mn) FY20 FY21 (A) Share Capital 227 227 (A) Property plant & Equipment 3,989 4,161 (B) Other Equity 4,199 5,005 (B) Capital Work in Progress 194 126 (C) Investment properties 122 120 Non Controlling Interest
Slide 35: Key Financial Highlights
Key Financial Highlights Total Income* (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 13,522 798 1,342 12,425 11,603 1,075 957 560 525 3,239 326 193 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 Net Debt to Equity (x) Working Capital Days Return on Capital Employed (%) 0.10 29 21.42% 1
Slide 36: Capital Market Information
Capital Market Information Stock Market Performance (as on 30th June, 2021) 400% 350% 300% 250% 200% 150% 100% 50% 0% Jul-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 ACE Sensex Shareholding Holding pattern as on 30th June 2021 Price Data (As on 30th June, 2
Slide 37: Disclaimer
Disclaimer 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
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