Action Construction Equipment Limited · NSE:ACE
Action Construction Equipment — Investor Presentation (March 2021)
35 slides from Action Construction Equipment's investor presentation, March 2021
Slide 1: Investor Presentation March 2021
Investor Presentation March 2021
Slide 2: 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 3: Company Overview
Company Overview
Slide 4: Company Overview
Company Overview Financial Highlights (INR Mn) • ACTION CONSTRUCTION EQUIPMENT LIMITED was established in 1995 by a technocrat, Mr. Vijay Agarwal who has over 50 years of industry experience 13,425 8.33% 8.99% and is run by a team of experienced professionals. 11,562 10,987 7.28% 8.25% 7,698 • ACE i
Slide 5: 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 6: Manufacturing Facilities
Manufacturing Facilities Total capacity (Units) Agriculture Agriculture Cranes Equipment Equipment Cranes 9000 9000 Pick & Carry Crane Crawler Crane Tower Crane Tractor 1800 1500 Material Material Construction Construction Handling Handling Equipment Equipment Equipment Equipment Backhoe Loader Moto
Slide 7: 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 8: Clientele
Clientele Key Infra Players Manufacturing Sector Government Sector 8
Slide 9: Research & Development
Research & Development 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 • Catalyse Tech Upgradation to Meet International Standards of Safety and Quality • Innovate Products
Slide 10: 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 11: 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 12: 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 13: 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 14: Sector Overview
3 ~ |Sector Overview
Slide 15: 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 16: 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 17: 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 18: Business Overview
Business Overview
Slide 19: 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 20: 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 21: Industry Overview
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 22: 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 23: 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 250 • The growing population in emerging economies such as India has resulted in
Slide 24: 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 25: 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 Dollar potential by 2025 will be another major d
Slide 26: 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 27: 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% over 2020-2025. • Government initiatives regarding rural development and farm mecha
Slide 28: 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 29: 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 30: Financial Overview
ACE Financial Overview
Slide 31: Historical Income Statement (IND-AS)
Historical Income Statement (IND-AS) Particulars (INR Mn) FY18 FY19 FY20 Revenue from Operations 10,987 13,425 11,562 Total Expenses 10,072 12,447 10,646 EBITDA (Excluding other Income) 915 978 916 EBITDA Margin (%) 8.33% 7.28% 7.92% Other Income 79 97 41 Depreciation 119 118 130 Finance Cost 135 11
Slide 32: Historical Consolidated Balance Sheet
Historical Consolidated Balance Sheet Equities & Liabilities (INR Mn) FY19 FY20 H1-FY21 Assets (INR Mn) FY19 FY20 H1-FY21 (A) Share Capital 235 227 227 (A) Property plant & Equipment 3,275 3,989 3,993 (B) Other Equity 4,141 4,199 4,302 (B) Capital Work in Progress 83 194 231 Non Controlling Interest
Slide 33: Key Financial Highlights
Key Financial Highlights Net Operating Revenue (INR Mn) EBITDA (INR Mn) PAT (INR Mn) 560 13,425 520 525 978 915 916 10,987 11,562 412 692 7,511 7,698 6,373 394 307 140 86 FY16 FY17 FY18 FY19 FY20 9M-FY21 FY16 FY17 FY18 FY19 FY20 9M-FY21 FY16 FY17 FY18 FY19 FY20 9M-FY21 Borrowings (INR Mn) Working Ca
Slide 34: Capital Market Information
Capital Market Information 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 ACE Sensex Shareholding Holding pattern Price Data (As on 31st December, 2020) Public Face Value (INR) 2.00 25% Market Price (INR) 135.7 52 Week
Slide 35: 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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