Action Construction Equipments Reports Mixed Financial Results for December Quarter

Feb 08 2025 08:33 AM IST
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Action Construction Equipments has announced its financial results for the quarter ending December 2024, showcasing record net sales and operating profit. However, the company faced challenges with a reported profit after tax of zero and increased interest expenses, raising concerns about future profitability and financial stability.
Action Construction Equipments has recently reported its financial results for the quarter ending December 2024, revealing a complex picture of performance within the engineering and industrial equipment sector. The company's net sales reached Rs 875.11 crore, marking the highest figure in the last five quarters, while operating profit also peaked at Rs 134.89 crore during the same period. Additionally, profit before tax (PBT) stood at Rs 119.32 crore, reflecting a year-on-year growth of 30.65%. These metrics indicate a positive near-term trend in sales and profitability.

However, the results also highlight significant challenges. The profit after tax (PAT) was reported at Rs 0.00 crore, representing a complete decline compared to the previous year, which raises concerns about the company's overall profitability. Furthermore, interest expenses have increased to Rs 24.77 crore, suggesting a rise in borrowings that could impact future financial stability. The earnings per share (EPS) also hit a low of Rs 0.00, indicating a reduction in earnings available to shareholders.

In light of these developments, Action Construction Equipments has experienced an adjustment in its evaluation, with its score reflecting these mixed results.

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