Action Construction Equipment Limited · NSE:ACE
Action Construction Equipment — Investor Presentation (November 2024)
45 slides from Action Construction Equipment's investor presentation, Nov 20, 2024
Slide 1: Exchange filing cover letter: Corporate Presentation November 2024
Action Construction Equipment Limited Corporate & Registered Office Dudhola Link Road, Dudhola, Distt. Palwal-121102, Haryana, India Date: November 20, 2024 To, The Manager Listing BSE Limited Scrip Code: 532762 5th Floor, P.J. Towers, Dalal Street, Mumbai-400001 The Manager Listing National Stock E
Slide 2: Corporate Presentation November 2024
Corporate Presentation November 2024
Slide 3: Table of Contents
Table of Contents I. ACE at a Glance III. Growth Drivers Sectoral Growth Drivers Opportunities & New Products II. Company Overview Evolving Opportunities Product Portfolio - Defence Sector Board of Directors - Export Sector Management Team Manufacturing Facilities IV. Business & Industry Overview Do
Slide 4: At a Glance
At a Glance India’s most diversified CE Manufacturer Established Brand with over 29 years of Operating across Infra, Construction, Industry Presence Manufacturing, Logistics, Defence & Agri sectors World’s largest Pick & Carry Crane Manufacturer Customer Centric Organization with In-depth with Pan I
Slide 5: Company Overview
Company Overview
Slide 6: Company Overview
Company Overview • ACTION CONSTRUCTION EQUIPMENT LIMITED was established in 1995 by Consolidated Financial Highlights (INR Mn) Mr. Vijay Agarwal, a technocrat, who has over 50 years of industry experience and is run by a team of experienced professionals. 29,909 17.32% • ACE is an established and re
Slide 7: Product Portfolio
Product Portfolio Cranes Pick & Carry Cranes Lorry Loaders Rough Terrain Cranes Crawler Cranes Truck Cranes Tower Cranes Construction Equipment Backhoe Loaders Tele Handlers Vibratory Rollers Motor Graders Access Platforms Material Handling Equipment Forklift Trucks Warehousing Equipment Piling Rigs
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 Vyom Agarwal – President – Sourcing & IR Manish Mathur– CEO Cranes and Const. Equipment Joined in June’2010 as Chief Financial Officer Experience: 19 years including 8 years in Axis Bank as a financial analyst in Joined ACE in 1997 and under his
Slide 10: Manufacturing Facilities
Manufacturing Facilities State-of-the-art production facilities based in the industrial townships of NCR, Haryana with a capacity to produce around 17,400 construction equipment and 9,000 Tractors annually. Total Capacity (Units) Agriculture Equipment 9,000 Cranes Cranes 13,200 Material Handling Pic
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. Cranes, MHE & Construction equipment dealer network in over 125 locations More than 200 Agri dealers across the country These outlets are further supported by company officials based at Delhi, Mumbai
Slide 13: Global Presence
Global Presence Russia Ukraine Kazakhstan Mongolia Malta Turkey Azerbijan Tunisia Iraq Afghanistan Nepal Kuwait Bhutan Saudi Arabia India St. Lucia Bangladesh Myanmar Mexico Oman Thailand Sudan Yemen Vietnam Venezuela Ivory Coast Ghana Cameroon Ecuador Kenya D R Congo Pap New Guinea Tanzania Bolivia
Slide 14: Clientele
Clientele Manufacturing Sector Infra Players 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 1995 2008 2014 2020 • Company Incorporated • Introduced Crawler Crane • Introduced Wheel Harvester • Introduced Cranes for Pilling • Introduced Hydraulic Mobile Cranes 2009 2015 2021 • Entered Construction Equipment Market • Introduced Rotavator and Other Agri • Developed
Slide 17: Recent Awards
Recent Awards India’s top Best Seller - Best Seller - India’s 20 Most Person of the Year Best in Sales – Pick and Harun India Transformative Trailblazing Bestseller in Mobile Innovative Construction India’s Top Challengers Guinness World challengers Mobile cranes Tower cranes Impactful Mr. Sorab Aga
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 29 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 Prof
Slide 20: Growth Drivers
ACE | Growth Drivers
Slide 21: Sectoral Growth Drivers
Sectoral Growth Drivers • Investment of INR 75,000 Crs, for one hundred critical transport infrastructure projects, for last and first mile Capex outlay increased connectivity for ports, coal, steel, fertilizer, and food grains sectors. • Urban Infrastructure Development Fund (UIDF) will be establis
Slide 22: Sectoral Growth Drivers
Sectoral Growth Drivers • The Ministry of Agriculture and Farmers' Welfare has been allocated INR 1,52,000 Crores in the 2024-25 Union Budget. • Indian tractor market stands at ~8,74,000 units and the Indian agricultural tractor market is anticipated to grow at a CAGR of 6.7% over the forecast perio
Slide 23: Opportunities & New Products
Opportunities & New Products • ACE intends to increase the contribution of exports in total revenues to a significant share over the medium term • Tapping Opportunities in the Defence Fully Electric Mobile Crane Sector • Increasing Utilisation Levels of Construction Equipment. • New Product Launches
Slide 24: 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 25: Evolving Opportunities – Defence Sector
Evolving Opportunities – Defence Sector 24
Slide 26: Evolving Opportunities - Exports
Evolving Opportunities - Exports Forma Range of Tractors Telehandler 2-4 Tons 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, Telehandler and Backhoe L
Slide 27: Business Overview
Business Overview
Slide 28: 4 years revenue and volume growth
4 years revenue and volume growth Volume Growth Revenue Growth (INR MN) 11.34% CAGR 26.71% CAGR 14,589 29,909 12,310 11,364 10,482 22,008 9,493 16,404 15,527 7,033 12,425 11,603 FY-20 FY-21 FY-22 FY-23 FY-24 H1-FY25 FY-20 FY-21 FY-22 FY-23 FY-24 H1-FY25
Slide 29: 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 35 Tons Average Selling Price: INR ~18-20 lacs • Sectors: Infrastructur
Slide 30: 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 31: Patented Innovations
Patented 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
Slide 32: Industry Overview: Cranes
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 construction activities in emerging economies, such as China, India, and the Philippines. 3X • Key factors driving the demand mobile cranes market is
Slide 33: 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 ~22-24 lacs • Cost effective, rugged and reliable • Sectors: Infrastructure, Construction, Mining
Slide 34: 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. 10%^ 250 • The growing population in emerging economies such as India has result
Slide 35: 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 ~10-11 lacs • LPG Forklift – 2 Tons to 5 Tons • In collaboration with Doosan
Slide 36: 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 potential by 2025 will be another major driver
Slide 37: 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 38: Industry Overview: Agricultural Equipment
Industry Overview Agricultural Equipment • India is one of the largest tractor markets in the world, selling ~ 8,74,000 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 39: Financial Overview
ACE Financial Overview
Slide 40: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Particulars (INR Mn) FY22 FY23 FY24 H1-FY25 Total Income* 16,404 22,008 29,909 15,527 Total Expenses 14,782 19,387 25,106 12,838 EBITDA 1,622 2,621 4,803 2,689 EBITDA Margins (%) 9.89% 11.91% 16.06% 17.32% Depreciation 154 180 232 138 Finance Cost 95 103
Slide 41: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equities & Liabilities (INR Mn) FY23 FY24 H1-FY25 Assets (INR Mn) FY23 FY24 H1-FY25 (A) Share Capital 238 238 238 (A) Property plant & Equipment 4,723 5,595 5,669 (B) Other Equity 8,948 12,060 13,599 (B) Capital Work in Progress 244 436 535 Non Controlling Inter
Slide 42: Key Consolidated Financial Highlights
Key Consolidated Financial Highlights Total Income* (INR Mn) EBITDA and EBITDA Margins (INR Mn) PAT and PAT Margins (INR Mn) 3,282 29,909 17.32% 11.53% 16.06% 22,008 11.91% 4,803 7.86% 10.97% 9.89% 6.40% 1,790 16,404 15,527 2,689 2,621 1,730 1,622 1,050 FY22 FY23 FY24 H1-FY25 FY22 FY23 FY24 H1-FY25
Slide 43: Capital Market Data
Capital Market Data 160% Stock Market Performance (as on 30th September, 2024) 140% 120% 100% 80% 60% 40% 20% 0% Oct 23 Nov 23 Dec 23 Jan 24 Jan 24 Mar 24 Mar 24 Apr 24 May 24 Jun 24 Jul 24 Aug 24 Sep 24 -20% ACE Sensex Price Data (As on 30th September, 2024) Shareholding Holding pattern (As on 30th
Slide 44: 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 45: Thank You
ACE- Lifting India’s Growth THANK YOU Action Construction Equipment Ltd. Dudhola Link Road, Dudhola Palwal (Haryana)-121102 INDIA Board : 01275-280111, 280220 Web : www.ace-cranes.com
Action Construction Equipment — Investor Presentation (November 2024) on 6ix