Consolidated financial highlights ACE registered its best-ever Q2 i.e. Jul-Sep quarter in terms of revenue and margins. Continued growth momentum with operational revenue growing by 12.2 per cent on a YoY basis EBITDA Margins expand by 268 bps YoY to 18.04 per cent Margin expansion continued, driven by operating leverage, a better product mix and efficient cost control measures Cranes, material handling and construction equipment volumes grew by 9 per cent YoY, Revenue grew by 13.11 per cent YoY Management comments On ACE’s performance, Executive Director, Sorab Agarwal shared that the company’s consistent strong performance is reflective of our strategic clarity, strength of our brand, capabilities of our team and the agility to run the business. By balancing growth initiatives with prudent financial practices, we have been able to deliver strong returns while continuing to invest in capacity expansions with cutting edge technologies. In the quarter gone by, we have reinforced our liquidity position, improved working capital efficiency and further fortified our balance sheet which gives us the flexibility to seize growth opportunities in the future. We have a clear and compelling strategy and with our positioning in the infra, manufacturing, logistics and agri sectors, underpinned by strong operational excellence and our distinctive capabilities, we will continue to drive growth and create a purpose-led, future-fit organisation. Financial Performance The operational revenues grew by 12.20 per cent on a YoY basis to Rs 754.34 crore with an EBIDTA margin of 18.04 per cent. The EBITDA during the quarter expanded by 268 bps and increased to Rs. 142.19 crore in comparison to Rs 105.74 crore on a yearly basis, which is a growth of 34.47 per cent. The PBT expanded by 199 bps to Rs 126.26 crore and the PAT expanded by 127 bps to Rs 94.37 crore on a YoY basis. The PBT and PAT margins stood at 16.01 per cent and 11.97 per cent respectively. Margin expansion continued, driven by operating leverage, better product mix with improved price realizations, efficient cost control measures and favorable commodity prices. Segmental performance The company has sustained its growth momentum across all operating segments. In the cranes, material handling and construction equipment segment during the quarter gone by, ACE registered consolidated revenue of Rs 693.07 crores as compared to Rs 612.74 crore in Q2 FY24 which is a growth of 13.11 per cent. The company recorded sales of 2863 units in the quarter which is up by 9 per cent YoY. The margins also expanded to Rs 127.41 crore vis-à-vis Rs 91.16 crore; thereby registering a growth of 39.77 per cent YoY. The agri equipment division has registered revenue of Rs 61.27 crore with 3.85 per cent margin. Going forward, with adequate water reservoir levels, better liquidity, and consumer credit availability, the company expects the demand momentum to improve in the Agri space. Further, for the H1 FY25, the company has been able to grow its operational revenues by 12.50 per cent to Rs 1,488 crore. On the half yearly basis, EBITDA grew by 31.72 per cent to Rs 267.7 crore, the PBT grew by 27.9 per cent and PAT grew by 26.32 per cent to Rs. 237.68 crore and Rs 178 crore respectively. For H1FY25, the margin profile of the company stood at 17.28 per cent EBITDA, 15.34 per cent PBT and 11.49 per cent PAT which represents a healthy margin expansion YoY. Looking ahead, India remains as one of the fastest growing economies, and its prospects remain very strong for the period ahead. The FY25 Union Budget raised capital expenditure to Rs 11.11 lakh crore, marking a 17 per cent increase from FY24’s estimate of Rs 9.5 lakh crore. This capex amount constitutes 3.4 per cent of India’s GDP for FY25, reinforcing the government’s commitment to infrastructure development and growth-oriented spending having multiplier effect on the economy. The budget allocation focuses on critical infrastructure sectors, with roads and railways receiving significant portions. The road sector was allocated Rs 2.78 lakh crores, and railways were allocated Rs 2.52 lakh crore. This allocation emphasises the government's strategy to bolster connectivity and logistics, which is crucial for sustaining long-term economic growth and supporting the Vikasit Bharat vision for 2047. The manufacturing sector was also recognised as a critical driver for sustainable economic growth, especially as India works toward becoming a global manufacturing hub. This bodes well for our company which is poised for growth with sustained demand for cranes, material handling and construction equipment. Further, with capacity built up, the company remains optimistic about the medium-to long-term prospects and remains focused on delivering its sustainable growth agenda.