Action Construction Equipment Ltd

I am delighted to announce yet another progressive year across all sectors of our business. The financial year 2023-2024 has proven to be a remarkable period for the Company, marked by unprecedented profits.

The Company has excelled in every financial aspect, achieving its highest-ever revenue, profit and profit margins. Compared to FY23, total income surged by an impressive 36% to 2,991 Crores, EBITDA soared by 83% to 480 Crores, and Profit after Tax witnessed a growth of 90% to 328 Crores. Our EPS continues its upward trajectory. Additionally, the Company has demonstrated substantial growth in both volume and value, further bolstering its balance sheet position.

The focal points for India over the next 25 years to emerge as a developed nation will be building infrastructure and attracting investments. The Union Government's substantial investments in modern infrastructure have propelled the country's growth to new heights. In Budget 2024-25, there is an 11.1% increase in the capital investment outlay for infrastructure, amounting to 11.11 Lakh crore (US$ 133 billion), which constitutes 3.4% of GDP, nearly triple the outlay in 2019-20. The quality of a country's infrastructure plays a pivotal role in shaping its economic trajectory.

The past financial year witnessed significant growth in the infrastructure, construction, real estate and manufacturing secto The outlook for these segments remains robust due to the government's unwavering focus and various schemes such as the smart city project, PM Awas Yojana, PLI Scheme, etc., which serve as growth catalysts. The most substantial impetus is expected to come from the manufacturing sector, propelled by initiatives like Make in India and the China +1 strategy.

India aspires to become one of the global manufacturing hubs, leveraging its competitive advantage in skilled workforce and lower labour costs. The manufacturing sector is experiencing a surge in capital expenditure and heightened M&A activity, resulting in increased manufacturing output and higher contribution to exports.

We play an integral role in India's growth, with an increased focus on improving the utilization of cutting-edge technologies and sustainable practices. We are confident that our strategic initiatives, combined with our commitment to quality and innovation, will continue to improve our market position and significantly contribute to the nation's economic development. Our goal is to become a globally renowned and sought-after company by promoting business in India and around the world.

Agriculture, the backbone of India's economy, requires continued support for the country to achieve greater heights. In Budget 2024-25, the government has allocated 1.27 lakh crore to the Department of Agriculture, Cooperation, and Farmers Welfare to further bolster this sector.

ACE's leadership in developing cutting-edge equipment has earned the Company a strong brand reputation and repeat business, fostering steady growth. Our flexibility and agility allows us to cater to a wide range of industries, and our commitment to innovation drives our R&D efforts.

Environmental issues are at the forefront of our technological development. We are in the process of launching our new CEV-5 range of products for both domestic and global markets. We are proud that innovation is now well integrated into our products and business strategy.

Recognizing the vast global opportunities, we have expanded our export arm and ventured into new territories with our tractors, cranes, and construction equipment. We aim to significantly boost our export volume to meet the rising global demand for our products. Increased Export Revenue, coupled with opportunities in the Defence Sector and rising utilization levels of Construction Equipment and Agri business, are propelling the Company forward.

We remain highly confident in the Company's medium to longterm prospects, with a solid foundation in place. With India's anticipated economic growth in the coming years, we firmly believe that the Company is poised for a multi-year growth cycle. Significant strides have been made in recent years to strengthen operations, diversify the product mix, and enhance procedures and controls.

In conclusion, I extend my sincere gratitude to all our stakeholders for their unwavering trust and support. We are committed to driving continued growth by offering innovative products and solutions and exploring new avenues for future expansion.