Ajax Engineering Reports Robust Q3 FY25 Performance with 37% Revenue Growth
By ScanX News Team
Ajax Engineering Limited announced strong Q3 FY25 results with revenue up 37% to ₹5,482 crore. SLCM segment grew 36.8%, Non-SLCM 71.5%, and Spares & Services 13.6%. EBITDA increased 31.8% to ₹881 crore, while net profit rose 26.3% to ₹681 crore. Despite growth, margins slightly declined. The company maintains a 75% market share in the Indian SLCM market and expects growth momentum to pick up from H2 FY26.
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Ajax Engineering Limited (BSE: 544356, NSE: AJAXENGG), a leading player in the concrete equipment manufacturing sector, has announced its financial results for the third quarter of fiscal year 2025, showcasing strong growth across key financial metrics.
Revenue Soars by 37%
The company reported a significant increase in revenue for Q3 FY25, reaching ₹5,482 crore, up 37% from ₹3,993 crore in the same quarter last year. This robust growth was primarily driven by strong performance in both the Self-Loading Concrete Mixer (SLCM) and Non-SLCM segments.
Segment-wise Performance
- SLCM revenue grew by 36.8% year-over-year to ₹4,705 crore
- Non-SLCM segment saw an impressive 71.5% growth, reaching ₹436 crore
- Spares & Services revenue increased by 13.6% to ₹341 crore
Profitability Metrics
Despite the strong top-line growth, the company experienced a slight decline in margins:
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| EBITDA | ₹881 cr | ₹668 cr | +31.8% |
| EBITDA Margin | 16.1% | 16.7% | -60 bps |
| Net Profit | ₹681 cr | ₹539 cr | +26.3% |
| Net Profit Margin | 12.3% | 13.2% | -90 bps |
Management Commentary
Shubhabrata Saha, Managing Director & CEO of Ajax Engineering, commented on the performance: "We have delivered a healthy performance in Q3FY25, with strong growth across our SLCM and Non-SLCM verticals. Our YTD FY25 EBIDTA and Gross Margin % are in line with our expectations and in the range of our FY24 numbers."
He further added, "The demand in H1 was impacted due to the election process and prolonged monsoons. However, Q3 showed significant uptick in demand post monsoon months and revival in government capex."
Future Outlook
Looking ahead, the company expects the coming few months to remain slightly muted, with growth momentum expected to pick up from H2 of FY26. The management remains confident about the long-term growth prospects, citing the anticipated infrastructure development in the country and increasing adoption of mechanized equipment.
Financial Position
As of September 30, 2024, Ajax Engineering maintained a strong balance sheet with:
- Total assets of ₹13,488 crore
- Shareholders' equity of ₹9,958 crore
- Cash and cash equivalents of ₹506 crore
Market Position
Ajax Engineering continues to strengthen its leadership position in the Indian SLCM market, holding approximately 75% market share. The company is also making strides in the Non-SLCM segment, growing faster than the market with a volume CAGR of 30% over FY22-24 in boom pumps.
Conclusion
Ajax Engineering's Q3 FY25 results demonstrate the company's ability to capitalize on the growing demand for concrete equipment in India's infrastructure sector, despite some near-term challenges. The management's focus on operational efficiency and market expansion strategies positions the company well for future growth in the evolving construction equipment landscape.
Historical Stock Returns for Ajax Engineering
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +3.19% | +12.53% | +15.77% | +17.68% | +17.68% | +17.68% |
