ACE has eight manufacturing and one R&D site in Faridabad, Haryana. The company commands strong market share in excess of 60 per cent in the crane market and drives 70 per cent of the business. The company’s equipment is used in sectors like infrastructure, construction, power projects, ports & shipyards, dams, metro rail, roads, mining, steel industry, engineering industry, railways, cement, petroleum, defence, chemicals & fertilizer plants, warehousing, logistics, building construction, and many more.
Despite a tough time during Covid second wave, the company has performed better on the back of some increased demand in construction equipment segment and exports. In FY21-22, ACE has outperformed across all financial parameters by achieving its highest ever revenue and profit. At a consolidated level comparing with FY21, the company’s total income grew by 32 per cent to Rs 1,630 crore, EBITDA grew by 24 per cent to Rs 167 crore and profit after tax grew by 32 per cent to Rs 105 crore.
Apart from the Infrastructure sector, the construction and real estate sector also saw a good revival in the past financial year and the outlook for this sector is bright for the Agriculture segment, ACE’s management said in FY22 annual report.
Increasing public & private infrastructure, Foreign Direct Investments (FDI) reforms for the construction sector, highway projects and a growing economy has led to the global surge in the construction equipment market in India. The government in India has recently invested in the infrastructure sector. Considerable investment in the development of infrastructure in India is supposed to upsurge the demand for different kinds of construction equipment, the company said.
ACE further said the stable free cash flow gives opportunities to empower contiguous product segments. With extra cash in the bank, the Company can empower new technologies as well as in new product segments.
Increased availability of financial support due to government-led incentives and initiatives, Introduction of Production Linked Incentive (PLI) scheme to boost the development of infrastructure and in-flow of private and public investments in the country along with increased in-flow of FDI are the favorable factors for demand of construction equipment.
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