Action Construction Equipment Reports Mixed Financial Results Amid Sales Decline and Profit Challenges in June 2025

Action Construction Equipment has recently reported its financial results for the quarter ending June 2025, revealing a complex landscape of performance metrics. The company's score has undergone an adjustment, reflecting a notable shift in evaluation over the past three months.
On a positive note, the Profit After Tax (PAT) for the nine-month period stands at Rs 327.96 crore, showcasing a year-on-year growth of 21.08%. This indicates a favorable trend in profitability for the near term. However, the company faces challenges as evidenced by its net sales, which have recorded a decline of 11.19% year-on-year, reaching Rs 652.08 crore—the lowest figure in the last five quarters. This downturn in sales is accompanied by a decrease in operating profit, which has also hit a five-quarter low at Rs 92.83 crore.

Additionally, the Profit Before Tax (PBT) has fallen to Rs 76.58 crore, marking a year-on-year decline of 9.31%. The reliance on non-operating income, which constitutes a significant portion of the PBT, raises concerns about the sustainability of the business model. Furthermore, the debtors turnover ratio has reached its lowest point in recent periods, indicating a slowdown in the company's ability to settle its debts.

For more insights, Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.