ACE Reports Strong Q1 FY25 Results with 12.82% Revenue Growth
ACE has maintained its growth momentum in Q1 FY25, achieving its best-ever April-June quarterly performance despite the backdrop of General Elections. Executive Director Sorab Agarwal highlighted the company's robust growth across all business segments and significant improvement in key operating metrics. Operational revenues grew by 12.82% YoY to ₹733.63 crores, with EBIDTA increasing by 28.73% to ₹125.50 crores and margins expanding from 15% to 17.11%. PBT grew by 24.87% to ₹111.42 crores, while PAT increased by 24.46% to ₹83.71 crores. Margin expansion was driven by operating leverage, a better product mix with improved price realizations, efficient cost control measures, and favorable commodity prices. The company is also in discussions with KATO WORKS CO LTD. to establish a joint venture in India to produce medium and large-sized cranes. This joint venture aims to introduce a wide range of value-added products for both the Indian and export markets, supporting ACE's medium- to long-term growth strategy. The Cranes, Construction Equipment & Material Handling segment saw consolidated revenue of ₹690.67 crores, up 20% YoY, with margins expanding to ₹103.76 crores. The Agri Equipment Division registered revenue of ₹42.96 crores with a 3% margin. Looking ahead, ACE expects the demand momentum to improve in the Agri space, driven by favorable monsoon conditions, better liquidity, and consumer credit availability. With India's strong economic prospects and the government's focus on infrastructure projects, the company remains optimistic about its medium- to long-term growth prospects.
