Action Construction Equipment in talks with Kato Works for setting up a JV, shares rise up to 3%

Action Construction Equipment Ltd informed the exchanges in a filing that it is in talks with Kato Works, a Japanese global construction equipment manufacturer of Mobile Cranes, Excavators and other equipment, to establish a joint venture in India.

The two companies are likely to sign a formal contract as soon as they reach an agreement on the terms. The company said that the Joint Venture (JV) is aimed at producing medium—and large-sized cranes (such as truck cranes, crawler cranes, and rough terrain cranes). The heavy construction equipment manufacturer said that through the JV, the company also plans to utilise the technology that will be cultivated in the company’s development and introduce a wide range of value-added products for export.

The construction vehicle manufacturer’s consolidated revenue from operations for the March quarter surged 36% to ₹835.84 crore from ₹613.84 crore in the same quarter of the preceding fiscal. Sequentially the company’s revenue from operations grew nearly 11% from ₹753.11 crore in the quarter ended December. Action Construction Equipment’s revenue from operations for FY24 grew nearly 35% to ₹2,913.8 crore from ₹2,159.68 crore in the preceding fiscal.

Action Construction Equipment’s net profit grew nearly 109% to ₹98.45 crore from ₹47.15 crore in the preceding fiscal. The company’s net profit for FY24 grew nearly 90% to ₹328.2 crore from ₹172.99 crore on a year-on-year basis.

Shares of Action Construction Equipment closed 0.17% higher at ₹1,513 per share on the NSE.