Shakti Pumps Concall Notes - May 2024
Financial Performance:
- Achieved highest revenue of Rs. 1,371 crores and profitability of Rs. 142 crores in FY24.
- Q4 FY24 performance was the highest ever with revenue of Rs. 609 crores and PAT of Rs. 90 crores.
- EBITDA margins of 16.4% for the financial year.
- Anticipate stable EBITDA margins around 14-15% going forward.
- Order book of around Rs. 2,400 crores providing revenue visibility for 18 months.
- Recent order accumulation of approximately Rs 243 crores under the PM Kusum scheme.
- Robust revenue growth with government business revenue growing by about 52% YoY to Rs 945.1 crores in FY24.
- Export sales increased by around 23% YoY to Rs. 286.1 crores in FY24.
Future Growth and Strategy:
- Government’s focus on deployment of solar pumps presents significant opportunities.
- Company stands at the forefront of the solar pump revolution.
- Plans to double existing capacity of pumps/motors, inverters/VFDs, and structures.
- Raised Rs. 200 crores through QIP for expansion.
- Investment in Wholly Owned Subsidiary, Shakti EV Mobility Private Limited, for transition into the electric vehicle space.
- Focus on innovation with two new patents received this quarter, contributing to a robust patent portfolio.
- Commitment to driving sustainable growth and creating long-term value for stakeholders.
Order Book and Execution:
- Order book of Rs. 2,400 crores with execution timelines of 18 months for Rs. 1,500 crores and 90-120 days for the remaining orders.
- Strong order inflow from states like Maharashtra, Haryana, UP, and Rajasthan.
- Expectations of continued order inflow and growth in the future.
Market Share and Competitive Position:
- Market share at 30% with a commitment to increase it further.
- Strong position in the solar pump industry with a focus on quality and efficiency.
- Differentiation through the use of innovative technology like VFDs.
Margins and Operational Efficiency:
- Improved margins due to operational efficiency and scale.
- Operating margin guidance of 15% for FY25.
- Margins impacted positively by decreased raw material prices and operational improvements.
- Solar cells sales contributing significantly to revenue, with margins around 30%.
Industry Dynamics and Opportunities:
- Potential for significant growth in the solar pump industry.
- Focus on Atmanirbhar Bharat and indigenous manufacturing.
- Positive outlook on the EV segment with plans for expansion and quality stabilization.
- Expectation of sustained growth and market leadership in the future.
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