Action Construction Equipment Limited (ACE), a prominent player in the construction equipment industry, has made a strategic move into the renewable energy sector. The company has announced an investment in Hexa Energy HR1 Private Limited, marking its entry into solar power generation.

Investment Details

ACE's Board of Directors has approved an investment of ₹73.50 lakh in Hexa Energy HR1 Private Limited, a company specializing in the development and operation of solar power projects. The investment will be made through the subscription of 18,702 equity shares at ₹393.00 per share, which includes a premium of ₹383.00 per share.

Strategic Importance

This investment is part of a larger initiative by ACE to participate in a solar power project. According to the company's disclosure:

• ACE is required to maintain a minimum 26% equity shareholding in Hexa Energy HR1.
• The investment is a pre-condition for ACE's participation in the solar power project and to avail power under the Power Purchase Agreement (PPA).

Project Specifics

The solar power project being developed by Hexa Energy HR1 includes:

• A 1.5 MW AC/2.1 MWp DC solar power installation
• Part of a larger 50 MW solar park project in Haryana

Implications for ACE

This investment signifies ACE's commitment to diversifying its portfolio and entering the renewable energy sector. By participating in this solar power project, ACE aims to:

1. Meet its renewable power sourcing goals
2. Potentially reduce its long-term energy costs
3. Contribute to sustainable energy production

Regulatory Compliance

The company has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The investment does not fall under related party transactions, and neither the promoter nor the promoter group has any interest in Hexa Energy HR1.

ACE's move into solar power aligns with the growing trend of industrial companies investing in renewable energy sources, both for sustainability and potential cost benefits in the long run.

Action Construction Equipment Ltd. has released its fourth quarter financial results, showcasing robust growth across key metrics and announcing a dividend for shareholders.

Financial Highlights

The company reported impressive year-over-year improvements in its Q4 performance:

Action Construction Equipment Ltd. 's Q4 revenue grew to ₹9.60 billion, marking a 14.80% increase from the ₹8.36 billion reported in the same quarter of the previous year.

Profitability Boost

The company's profitability showed significant improvement:

• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) rose to ₹1.60 billion, up from ₹1.30 billion in the corresponding quarter last year.
• The EBITDA margin expanded to 16.99%, an increase of 1.49 percentage points from the previous year's 15.50%.
• Net profit surged to ₹1.20 billion, representing a 22.30% increase from ₹981.50 million in the year-ago period.

Sequential Growth

Action Construction Equipment Ltd. also demonstrated strong quarter-on-quarter performance:

• Net profit increased from ₹1.10 billion in the previous quarter to ₹1.20 billion in Q4, indicating continued momentum in the company's operations.

Dividend Announcement

In a move that will likely please shareholders, the company's board has recommended a dividend of ₹2.00 per equity share. This announcement comes on the heels of the strong financial performance, reflecting the company's commitment to returning value to its investors.

The robust financial results and dividend announcement underscore Action Construction Equipment Ltd. 's solid position in the market and its ability to generate value for shareholders despite challenging economic conditions.