Action Construction eyes 40-45 pc growth in revenue for FY12

MUMBAI: Haryana-based material handling and construction equipment manufacturing firm, Action Construction Equipment ( ACE), is eyeing 40-45 per cent growth in revenue for FY12, a top company official said.

"We are targeting a growth of 40-45 per cent in revenues. Similarly, the bottomline should grow about 60-70 per cent by the year-end," ACE Executive Director Sorab Agarwal said.

The company's profits for FY11 stood at Rs 693.56 crore and the profit after tax (PAT) at Rs 40.59 crore, he said.

The ACE is planning to acquire a Chinese firm and an Indian firm engaged in similar business, Agarwal added.

"We are very close to having an acquisition deal in China. In one-two months we should be signing the MoU. Apart from that we are in advanced talks with a company in India. Both the companies are in similar trade doing similar equipments," he said, adding the company will spend Rs 100-125 crore on the acquisitions.

The BSE-listed firm plans to spend Rs 35-40 crore during the current fiscal for its organic growth, Agarwal said.

"Primarily the investment will go towards the new plant at Kashipur, and also towards expanding capacities for our crawler cranes," he added.

The company will manufacture 5,500-6,000 tractors in the current fiscal and hopes to double up its capacity by FY14, Agarwal said.