NewsEarningsAjax Engineering Reports Mixed Q1 Results: Revenue Flat, Profit Declines 21% Amid ChallengesAjax Engineering Reports Mixed Q1 Results: Revenue Flat, Profit Declines 21% Amid Challenges
Ajax Engineering, a leading Indian concrete equipment manufacturer, reported flat revenue of ₹4,665.15 million in Q1, down 0.5% year-on-year. Profit after tax declined 21.1% to ₹528.75 million, while EBITDA fell 23.4% to ₹614 million. The company faced challenges including unseasonal rains, emission norm changes, and slower project execution. Despite this, non-SLCM volumes grew 25% year-on-year, and the company maintained its 69% market share in India's SLCM market. Management expects near-term margin pressure but remains confident in long-term growth prospects.
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Ajax Engineering , a leading manufacturer of concrete equipment in India, has reported its financial results for the first quarter, revealing a mixed performance amidst operational challenges.
Financial Highlights
- Revenue from operations remained relatively flat at ₹4,665.15 million, compared to ₹4,690.04 million in the same quarter last year, marking a marginal decrease of 0.5%.
- Profit after tax (PAT) declined by 21.1% to ₹528.75 million from ₹669.90 million in the corresponding quarter.
- EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped by 23.4% to ₹614 million from ₹802 million.
- EBITDA margin compressed by 390 basis points to 13.2%, while PAT margin fell by 300 basis points to 11.3%.
Operational Performance
Ajax Engineering faced several challenges during the quarter, including:
- Unseasonal rains
- Changes in emission norms
- Slower pace of project execution
Despite these hurdles, the company reported some positive developments:
- Non-SLCM (Self-Loading Concrete Mixer) volumes grew by 25% year-on-year
- SLCM business remained stable
- The company maintained its market leadership with approximately 69% share in India's SLCM market
Segment-wise Performance
| Segment | Q1 (₹ Mn) | Q1 Last Year (₹ Mn) | YoY Change |
|---|---|---|---|
| SLCM | 3,848 | 3,863 | -0.4% |
| Non-SLCM | 448 | 485 | -7.6% |
| Spares & Services | 369 | 342 | +7.9% |
Management Commentary
Mr. Shubhabrata Saha, Managing Director and CEO of Ajax Engineering, commented on the results: "After a strong performance last year, the current quarter has been one period of challenges and transition. Unseasonal rains, change in the emission norms, and a slower pace of project execution, have all had an impact on the business. However, we have remained focused on capability building and execution excellence."
He added, "While we anticipate some pressure on the margins in the near term, we expect to recover the same through operational efficiencies as well as pricing. We remain fully confident in the longer-term growth trajectory of our business."
Future Outlook
Ajax Engineering remains committed to maintaining its leadership position in the SLCM segment while building strong capabilities in the non-SLCM space. The company continues to focus on operational excellence and financial discipline as central elements of its strategy.
As of the reporting period, Ajax Engineering operates through 114 customer touchpoints with 52 dealers across 22 states in India, demonstrating its strong market presence and distribution network.
Investors and analysts will be closely watching how Ajax Engineering navigates the current challenges and capitalizes on its market leadership position in the coming quarters.
