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ICICI Direct Report
Action Construction Equipment Ltd.’s Q1 FY21 performance was dire as the company registered a loss. Crane segment (approximately 70% of revenue in FY20) was the worst hit due to standstill in infrastructure activities.
Revenue for the quarter was at Rs 100.9 crore, down 65.6% YoY. Crane segment revenue was at Rs 49.8 crore, down 77% YoY.
Total crane volumes were at approximately 299 units versus approximately 1316 units in Q1 FY20.
Gross margins expanded approximately 160 basis points YoY on account of lower input costs and trade purchases. However, unabsorbed fixed overheads led Action Construction Equipment to report an Ebitda loss of Rs 3 lakh.
On the expenses side, employee expenses declined 23% YoY coming in at Rs 14.85 crore while other expenses declined 61% YoY to Rs 7.87 crore.
Subsequently, Action Construction Equipment reported a net loss of Rs 4.2 crore versus Rs 11.9 crore profit in Q1 FY20.
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