Top Mutual Funds
- 01 Aug 2024
- ICICI Securities
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GROWTH OUTLOOK REMAINS HEALTHY
ACE - 1225 Change: 17.50 (1.45 %)News: Revenue increased by 12.7% YoY to Rs 734.3 crore, led by 20% YoY growth in cranes, construction equipment & material handling segment. These three segments put together (94% of total revenue), witnessed ~20% volume growth YoY while the blended realization remained flat YoY. Agri equipments revenue (6% of total) declined by 42.9% YoY on lower volumes & realizations. Sequentially, revenue declined 12.2% on lower volumes across segments. EBIDTA margin improved to 13.4% (+90 bps YoY, -208 bps QoQ), mainly led by positive operating leverage. Subsequently, EBIDTA increased by 20.8% YoY (-23.9% QoQ) to Rs 98.6 crore. PAT increased by 24.6% YoY (-14.5% QoQ) to Rs 84.2 crore.
Views: Growth outlook remains healthy for the company considering the strong growth momentum in cranes, construction equipments & material handling segments. Though agri segment remained a relative laggard, company expects recovery in this segment too. Management have been guiding 15-20% growth in cranes, material handling & agri equipments and 30-40% growth in construction equipments. Focus on new products (like large cranes, electric cranes etc) & new growth segments (like defence, exports) and in-organic opportunities, would further help in scaling-up and improvement in margins.
Impact: Positive