Action Construction Equipment - Q4FY21 First Cut - ICICI Direct

(CMP: Rs. 169; MCap: Rs. 1852 crore)

Action reported strong numbers for Q4FY21 led by strong performance from all segments. Margins improved on a YoY basis, but were down sequentially on account of higher input cost.

Q4FY21 Earnings Summary

- Revenue for the quarter came in at Rs. 457.4 crore, up 49.7% YoY & 14% QoQ Segmental performance was as follows:

Cranes

- Revenue Rs. 316.7 crore (up ~45.7% YoY)
- EBIT Rs. 40.98 crore, EBIT margin 12.9%

Construction Equipment

- Revenue Rs. 46.2 crore (up ~33.6% YoY)
- EBIT Rs. 3.2 crore, EBIT margin 6.8%

Material Handling

- Revenue Rs. 37.3 crore (up, ~74.6% YoY),
- EBIT Rs. 5.02 crore, EBIT margin 13.4%

Agri Equipment

- Revenue Rs. 57.1 crore (up, ~77.9%YoY),
- EBIT Rs. 7.4 crore, EBIT margin 12.9%

- Gross margins contracted ~239 bps YoY & ~ 156 bps QoQ on account of recent run up in steel prices. Employee cost was down 18% YoY while other expenses increased 30% YoY. Consequently, EBIDTA increased 82.4% YoY to Rs. 50 crore with an expansion of ~ 196 bps YoY & contraction of 36 bps QoQ in EBIDTA margins which came in at 10.9%.

- Subsequently, ACE reported a net profit of Rs. 38.8 crore, up 182% YoY

- For FY21, ACE posted a revenue increase of 6% led by robust performance in H2. The company cash flow to the tune of Rs. 86.05 crore during the period

We will be coming out with a detailed report post the conference call.

Shares of ACTION CONSTRUCTION EQUIPMENT LTD. was last trading in BSE at Rs.169.45 as compared to the previous close of Rs. 168.5. The total number of shares traded during the day was 227229 in over 7403 trades.

The stock hit an intraday high of Rs. 179.5 and intraday low of 167.5. The net turnover during the day was Rs. 39325469.

Source : Equity Bulls

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