ICICI Direct: Action Construction Equipment Check - July Sees Respite, Business Quantum Improves

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..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..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

ICICI Direct: Action Construction Equipment Check - July Sees Respite, Business Quantum Improves

ICICI Direct: Action Construction Equipment Check - July Sees Respite, Business Quantum Improves

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