Action Construction Equipment Limited · NSE:ACE
Action Construction Equipment — Investor Presentation (September 2021)
43 slides from Action Construction Equipment's investor presentation, September 2021
Slide 1: Corporate Presentation September 2021
Corporate Presentation September 2021 1
Slide 2: 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
Slide 3: Table of Contents
Table of Contents I. ACE at a Glance III. Key Investment Highlights Investment Highlights Sectoral Growth Drivers II. Company Overview Resilience to Covid-19 Pandemic Product Portfolio Evolving Opportunities Manufacturing Facilities Indian and Global Presence ` R&D and Training IV. Business Overview
Slide 4: ACE At a Glance
ACE 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 One of the world’s largest Pick & Carry Crane Manufacturer Manufacturer Pan India and Glo
Slide 5: Company Overview
Company Overview
Slide 6: 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 a
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 Piling Rig Forklift Trucks Warehousing
Slide 8: 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 Agriculture Equipment Equipment Cranes Cranes 9000 9000 Cr
Slide 9: Manufacturing Facilities
Manufacturing Facilities Engine Transmission Dudhola Plant Engine Assembly Machine Shop Fabrication Unit and Weld Shop Paint Line Spare Parts 9
Slide 10: 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 11: Global Presence
Global Presence Iraq Afghanistan Tunisia Nepal Bhutan Egypt Saudi Arabia India Mexico Myanmar Bangladesh Nigeria Oman Sudan Yemen Burkina Uganda Kenya Faso Tanzania Indonesia Bolivia Zimbabwe South Africa Argentina Exports to over 25 Countries Globally 11
Slide 12: 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 13: 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 14: 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 15: Our Journey and Key Milestones
Our Journey and Key Milestones 2016 • Introduced Skid Steer Loaders 2017 2006 • Introduced Range of Tractors and Material 2011 • IPO Listing Handling Equipment • Commenced in-house Manufacturing of • Ace won CNBC-TV18, Emerging India Crawler Cranes 2018 Award • Collaborated with Sunward for Pilling
Slide 16: Recent Awards
Recent Awards The Economic Times Business Leader of the Outstanding Employee North India Best Employer Bestseller in Mobile Cranes- Person of the Year Excellence in Engineering ACE Bags "Best Company in Best Company of the Engagement Prestigious Brand 2021 Year 2020 Award Award 2019 - 20 Equipment I
Slide 17: 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 18: ACE Edge
ACE Edge Established Brand with over 25 years of Industry presence 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 Marke
Slide 19: Key Investment Highlights
ACE Key Investment Highlights
Slide 20: Investment Highlights
Investment Highlights Buoyant Demand Well Positioned to Seize the Growth Opportunities arising from US$ 1.9 Trillion worth of Projects under the National Infrastructure Pipeline, which will be the Biggest Driver for CE Demand in India Experienced Team Promoter has more than 5 Decades of Industry Exp
Slide 21: 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 Launch of PM Gati Distribution Infrastructure etc. • 100 Smart Cities being developed and rejuvenation of 500 oth
Slide 22: 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 23: COVID Impact: Swift Recovery in Volumes Post Lockdown
COVID Impact: Swift Recovery in Volumes Post Lockdown Cranes Construction Equipment 2,000 1,719 250 221 1,596 195 1,319 200 Units Sold Units Sold 1,500 1,212 1,080 150 122 951 120 111 1,000 100 78 500 294 45 50 0 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY20 FY21 FY22 FY20 FY21 FY22 Agriculture E
Slide 24: Uptick in Revenues in Second Half of FY21
Uptick in Revenues in Second Half of FY21 Q1FY22 Sales Revenue (in INR Mn) impacted due to 5,000 4,574 partial lockdowns in response to second 4,004 covid-19 wave 4,000 3,055 3,215 2,934 2,893 3,000 2,681 2,683 2,000 1,009 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY20 FY21 FY22 Q1FY21 was impacted as a la
Slide 25: 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 26: Evolving Opportunities – Defence Sector
Evolving Opportunities – Defence Sector 26
Slide 27: 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 28: Business Overview
Business Overview
Slide 29: Cranes
Cranes Pick & Carry Cranes • Market Leader – 60% + market share • Application: 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 ~15.5 lacs • Sectors:
Slide 30: Cranes
Cranes Fixed Tower Cranes • Market Leader – 60% + 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: 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 32: 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 33: Construction Equipment
Construction Equipment Backhoe Loaders • Application: Digging, moving, grading and loading earth and other loose aggregates • Configuration: 2WD and 4WD Average Selling Price: INR ~19 lacs • Sectors: Infrastructure, Construction, Mining, Manufacturing Vibratory Rollers • Application: Compact aggrega
Slide 34: 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 resulte
Slide 35: Material Handling Equipment
Material Handling Equipment Forklift • India’s leading Forklift Manufacturer. • ~ 23% 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 36: 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 37: Agricultural Equipment
Agricultural Equipment Tractor • Application: Agricultural activities and construction and industrial haulage • Capacity Class: 35 HP to 90 HP (in both 2WD / 4WD configurations) • Around 200 dealers for tractor across India • Major Markets: Haryana, Uttar Pradesh, Rajasthan and Punjab; have signific
Slide 38: 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 39: Financial Overview
ACE Financial Overview
Slide 40: Historical Consolidated Income Statement (IND-AS)
Historical Consolidated Income Statement (IND-AS) Particulars (INR Mn) FY19 FY20 FY21 Q1-FY21 Q1-FY22 Total Income* 13,522 11,603 12,425 1,034 3,239 Income Growth (14.2%) 7.1% 213% Total Expenses 12,447 10,646 11,083 1011 2,913 EBITDA 1,075 957 1,342 23 326 EBITDA Margin (%) 7.95% 8.25% 10.80% 2.22%
Slide 41: 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 Non Controlling Interest 3 3 (C) Investment properties 122
Slide 42: Key Financial Highlights
Key Financial Highlights Total Income* (INR Mn) EBITDA and EBITDA Margins (INR Mn) PAT and PAT Margins (INR Mn) 798 13,522 1,342 12,425 11,603 1,075 10.06% 10.80% 560 6.42% 5.96% 957 525 7.95% 8.25% 4.14% 3,239 326 4.52% 193 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 FY19 FY20 FY21 Q1-FY22 Net De
Slide 43: Capital Market Information
Capital Market Information Shareholding Pattern Capital Structure Public Particulars Nominal Amount (INR Mn) 24% Authorized Capital 552.5 FIIs/DIIs 6% Issued Capital 227.0 Promoter 70% Note : Figures as on June 2021 43
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