Action Construction Equipment Limited · NSE:ACE
Action Construction Equipment — Investor Presentation (March 2024)
44 slides from Action Construction Equipment's investor presentation, Mar 14, 2024
Slide 1: Filing cover letter to stock exchanges
Action Construction Equipment Limited Corporate & Registered Office Dudhola Link Road, Dudhola, Distt. Palwal-121102, Haryana, India Date: March 14, 2024 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 2024
Corporate Presentation March 2024
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 India’s most diversified CE Manufacturer Established Brand with over 28 years of Operating across Infra, Construction, Industry Presence Manufacturing, Logistics and Agri sectors World’s largest Pick & Carry Crane Manufacturer Customer Centric Organization with In-depth with Pan India an
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 run by a team of experienced professionals. 22,008 21,341 16,404 • ACE is an established
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 Manish Mathur– CEO Cranes and Const. Equipment Vyom Agarwal – President – Sourcing & IR Rajan Luthra – CFO Joined ACE in 1997 and under his leadership, ACE has been a Experience: 18 years including 8 years in Axis Bank as a financial analyst in Joined in June’2010
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 17,000 construction equipment and 9,000 Tractors annually. Agriculture Equipment Cranes Agriculture Equipment Cranes 9,000 12,800
Slide 11: Manufacturing Facilities
Manufacturing Facilities Engines Transmissions Dudhola Plant Engine Assembly Machine Shop Fabrication Unit and Weld Shop Paint Line Spare Parts 10
Slide 12: 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 13: Clientele
Clientele Manufacturing Sector Infra Players Government Sector 12
Slide 14: 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 15: 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 16: Recent Awards
Recent Awards India’s top Best Seller - Best Seller - India’s 20 Most Person of the Year Best in Sales – HURUN India Transformative Trailblazing Bestseller in Mobile Innovative Construction India’s Top Challengers Guinness World Records challenges Mobile Tower Impactful Mr. Sorab Agarwal PnC Cranes
Slide 17: ACE Sustainability Framework
ACE Sustainability Framework SOCIAL • ACE Free Emergency Response Service • Subsidized Food Facility for ENVIRONMENT Needy • Rainwater Harvesting • Subsidized Pathology System Laboratory Services for Below Poverty Line Families • 1.8 MW Solar Power generation at the • Training of People and Manufact
Slide 18: ACE Edge
ACE Edge Established Brand with over 28 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 19: Growth Drivers
ACE | Growth Drivers
Slide 20: Sectoral Growth Drivers
Sectoral Growth Drivers • Total Capex outlay increased by 11.1% to approx. INR11.11 lakh crores in FY25 interim budget; major outlay for roads at INR 2.72lakh crore and railways at INR2.52 lakh crore. • Investment of INR 75,000 Crs, for one hundred critical transport infrastructure projects, for las
Slide 21: Sectoral Growth Drivers
Sectoral Growth Drivers • In the 2024-25 Union Budget, Ministry of Agriculture and Farmers' Welfare has been allocated INR 1,27,000 Crs. The government has given a clear signal to rural India that it is committed to their cause. • Indian tractor market stands at ~9,45,000 units and the Indian agricu
Slide 22: 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 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: Business Overview
Business Overview
Slide 27: 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 ~18-20 lacs • Sectors: Infrastructur
Slide 28: 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 29: Innovations- Patented Technology
Innovations- Patented Technology 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 &
Slide 30: 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 31: 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 32: 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 33: 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 34: 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 35: 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 36: 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 37: Financial Overview
ACE Financial Overview
Slide 38: Historical Consolidated Financial Performance
Historical Consolidated Financial Performance Particulars (INR Mn) FY21 FY22 FY23 ^ 9M-FY24 Total Income* 12,425 16,404 22,008 21,341 Total Expenses 11,083 14,782 19,387 18,043 EBITDA 1,342 1,622 2,621 3,298 EBITDA Margins (%) 10.80% 9.89% 11.91% 15.45% Depreciation 139 154 180 165 Finance Cost 122
Slide 39: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equities & Liabilities (INR Mn) FY22 FY23 H1-FY24 Assets (INR Mn) FY22 FY23 H1-FY24 (A) Share Capital 238 238 238 (A) Property plant & Equipment 4,355 4,723 5,006 (B) Other Equity 7,303 8,948 10,207 (B) Capital Work in Progress 243 244 550 Non Controlling Intere
Slide 40: Key Consolidated Financial Highlights
Key Consolidated Financial Highlights Total Income* (INR Mn) EBITDA and EBITDA Margins (INR Mn) PAT and PAT Margins (INR Mn) 3,298 2,298 22,008 21,341 2,621 16,404 12,425 1,622 1,730 15.45% 1,050 1,342 10.77% 11.91% 798 10.80% 9.89% 6.42% 7.86% 6.40% FY21 FY22 FY23 9M-FY24 FY21 FY22 FY23^ 9M-FY24 FY
Slide 41: Capital Market Data
Capital Market Data Stock Market Performance (as on 31st December,2023) 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% -20%Jan 23 Feb 23 Mar 23 Apr 23 May 23 Jun 23 Jul 23 Jul 23 Aug 23 Sep 23 Oct 23 Nov 23 Dec 23 ACE Sensex Price Data (As on 31st December, 2023) Shareholding Holding pattern (As o
Slide 42: Lifting India's Growth
Lifting India’s Growth hore of} a, a Swatieshi —— INDIA'S NO. 1 CRANE BRAND
Slide 43: 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 44: Thank You
THANK YOU
Action Construction Equipment — Investor Presentation (March 2024) on 6ix