Action Construction Equipment Confident Of Ending Fiscal With 15% Revenue Growth

Action Construction Equipment's Executive Director Sorab Agarwal is confident that the company is on track to easily scale a 15% topline growth in the ongoing fiscal amid a better-looking second half.

At the beginning of the year, the leading mobile crane manufacturer had projected a topline growth of 15–20% for the financial year 2024–25.

In the quarter ended September, the company had reported a revenue of Rs 791 crore, up by 14.6% on a year-on-year basis from Rs 690 crore in the corresponding quarter of the preceding fiscal.

While discussing with NDTV Profit how the company will achieve the topline growth stated above, he pointed out, “There are two things happening. First of all, the product mix, which is moving in favour of slightly bigger machines, and that helps us. Secondly, about 55–60% of our revenue, traditionally for the last 20–25 years, is coming in the second half.”

“I believe that our margins are going to be similar to what we have done recently,” Agarwal said.

He noted that the reason behind giving the guidance of 15% in the beginning of the year was because of the general elections and its impact on the market.

“I also said that it would be much better than that, totally depending on the results of the election and the momentum carrying forward. Now, we are confident of doing a 15% plus,” he said.

The top executive added that the second half has started off well. He said that the company's business had picked up in October and the momentum is still continuing on the back of increased demand.

“Things seem to be on track. Not with that much buoyancy that was there in the market before April but things are looking good. So, 15% is easily doable and could easily still be up to 20%,” he noted.

“On the whole, I believe that a lot of projects and a lot of mobilisation were pending. The orders were there because of the election and the subsequent Budget but things are getting released,” he said.

Agarwal further pointed out to the company's strong order book. “The order book, like I mentioned, October onwards things really improved and the execution also improved accordingly,” he said. The export scenario, which was a bit muted over the past few months, is also getting better in the second half. 

Shares of Action Construction Equipment Ltd. rallied up to 4% to scale an intraday high of Rs 1,274.65 apiece on the NSE on Monday.

The stock closed 2.44% higher at Rs 1,255 apiece on the NSE on Monday, compared to a 1.32% gain in benchmark Nifty 50.