Would you like to share more insights on WPIL ? They have posted excellent results this quarter and they have healthy order book as well. I’m confused between Shakti Pumps and WPIL. It would be great if you share your insights for investing in WPIL.

Q2 FY25 Concall highlights
Financial Performance:

• Q2 FY25 consolidated revenues reached ₹491 crores, a 54% year-on-year (Y-o-Y) growth.
• EBITDA for Q2 was ₹104 crores, reflecting a 57% Y-o-Y growth, with EBITDA margins at 21.27%.
• Profit After Tax (PAT) for Q2 amounted to ₹70 crores, a 64% Y-o-Y increase, with PAT margins at 15.3%.
• For H1 FY25, consolidated revenues stood at ₹853 crores, a 33% Y-o-Y growth, with EBITDA of ₹165 crores (31% growth) and PAT of ₹113 crores (36% growth).
• Standalone quarterly revenues grew by 78% Y-o-Y to ₹330 crores, with EBITDA increasing by 104% to ₹63 crores and net profit up by 99% to ₹47 crores.

Order Book and Execution:

• As of September 30, 2024, international order book stood at ₹534 crores.
• Domestic project business order book was ₹2730 crores, while domestic product business was approximately ₹401 crores.
• Project execution momentum is expected to accelerate in H2 FY25, post-monsoon, with commissioning on schedule.
• Anticipating a boost in tender activity in the second half of the financial year due to pent-up demand.

Operational Highlights:

• Strong growth in domestic product division, with revenues rising to ₹83 crores in H1 FY25 from ₹60 crores in FY24.
• Project division revenues increased to ₹431 crores in H1 FY25 compared to ₹260 crores in FY24.
• International operations remain stable with robust prospects, particularly in South Africa and Australia.
• Acquisition of Agri-5 in South Africa expected to enhance product offerings in the local water sector.

Market Outlook:

• Management sees steady growth across product and project divisions, supported by a diverse product portfolio and strong market presence.
• Positive outlook for international operations, particularly in MENA region and South Africa’s water sector.

Challenges and Headwinds:

• Management noted that delays in tendering and project execution were affected by recent elections, but expects a recovery in activity.
• The company is focused on execution rather than merely building the order book, ensuring that revenues align with execution capabilities.
• Negative operating cash flow attributed to receivables, expected to improve as projects progress.

Strategic Initiatives:

• The company is actively pursuing new contract opportunities and expects significant tender activity in the near future.
• Exploring acquisition opportunities to strengthen market presence, particularly in North America.
• Management emphasized the importance of maintaining margins between 15% to 20% and targeting high-value projects to sustain profitability.

Product Development:

• Differentiated product offerings with a focus on engineered solutions rather than commoditized products.
• The company aims to enhance its product mix, which has positively influenced margins.

Competitive Landscape:

• Competing with major players like Kirloskar in the pump segment and L&T in project execution.
• Strong brand recall and market presence serve as significant entry barriers in the industry.

Future Guidance:

• While management refrained from providing specific revenue guidance, they expressed confidence in sustaining growth and profitability based on strong order books and execution capabilities.

Excellent results must say. Also the order book is great and growing at a healthy rate, but one concern I can see is that the management is not giving any quantitative future guidance which according to me lacks clarity. They have only commented for the margins of 15%-20%. If anyone can help me clear my points or guide me through more insights of the company it would be great.

Note : Planning to invest.