Shakti Pumps – solar shakti (power)!

Shakti Pumps Limited, a prominent manufacturer of stainless-steel submersible pumps, pressure booster pumps, pump-motors, controllers, and inverters, released its financial results for the quarter and half-year ending on September 30, 2023. The company’s Chairman, Mr. Dinesh Patidar, highlighted the significant achievements and developments during this period in a letter addressed to the Listing Department of the National Stock Exchange of India Ltd. and the Corporate Relationship Department of BSE Limited.

The key points from the letter and the financial results are as follows:

Key Developments:

1. Shakti Pumps received notable orders under the PM KUSUM III Scheme:

• Two orders for 17,781 Off-Grid Solar Photovoltaic Water Pumping Systems (SPWPS) worth Rs. 651.0 Crores from Haryana Renewable Energy Department and the Department of Agriculture, UP.
• A Letter of Empanelment for 50,000 SPWPS pumps amounting to Rs. 1,603.0 Crores from Maharashtra State Electricity Distribution Company Limited.
• The company also received its first order under Component C from Ajmer Vidyut Vitran Nigam Limited for the implementation of 3,011 Grid Connected Solar Water Pumping Systems for Rs. 149.7 Crores.

2. Shakti Pumps demonstrated its commitment to innovation by securing four new patents, taking their total patent count to seven. One of these patents relates to their innovations in the electric vehicle (EV) space, where their subsidiary, Shakti EV Mobility Pvt. Ltd., is making progress. The company board has approved an investment of Rs. 114.29 Crores over the next five years in this subsidiary, anticipating growth in the EV industry.
3. The current surge in orders is expected to drive a business upturn in the second half of FY24, with additional orders from various states expected to support this trend.

Financial Highlights:

• Revenue from operations in Q2FY24 was Rs. 1,528 Million and Rs. 2,658 Million in H1FY24.
• The exports segment showed steady growth, with a 12.7% YoY increase in Q2FY24 at Rs. 699 Million. In H1FY24, exports revenue grew by 31.1% YoY to Rs. 1,346 Million.
• EBITDA for Q2FY24 was Rs. 152 million, representing a 22.2% YoY increase, with an EBITDA margin of 10.0% (expanded by 420 basis points).
• Profit after tax (PAT) for Q2FY24 increased to Rs. 59 Million from Rs. 19 Million, a growth of 208.5% YoY.

Other Highlights:

• Shakti Pumps has received four new patents, bringing the total number of granted patents to seven, with 22 patent applications still pending.
• The company has approved investments of Rs. 114.29 Crores in Shakti EV Mobility Private Limited, involved in manufacturing EV chargers, motors, and controllers.
• The Recognition of In-House R&D Unit(s) from the Department of Scientific and Industrial Research has been renewed until March 31, 2026.

In summary, Shakti Pumps reported a successful quarter and half-year with substantial orders under the PM KUSUM III Scheme and advancements in technology, including patents and investments in the EV industry. The company anticipates a strong business upturn in the coming months.