Shakti Pumps –
Q1 FY 25 concall highlights –
Shakti pumps is a leading integrated player manufacturing – fabrication technology based solar / electricity operated submersible pumps in India
One of the few players to make solar + submersible pumps and motors in house
One of the biggest beneficiary of PM KUSUM scheme and holds 25 pc Mkt share
Exporting to 100 + countries
Company has 03 integrated manufacturing facilities – all located at Pithampur, MP –
Unit -1 – ( main unit spread across 16 acres ) –
Capacity to manufacture 3.5 lakh pumps / yr ( including both submersible and industrial pumps )
4’‘, 6’‘, 8’’ & 10’’ motor manufacturing plant
Capacity to make – solar structures
Unit – 2 – export oriented unit ( 3.15 acres ) –
Capacity to make 1.5 lakh pumps / yr ( all stainless steel submersible pumps )
Unit -3 –
Capacity to make 2 lakh Variable frequency drives and solar inverters / yr
Customer / Revenue Mix –
State Govts – Via PM KUSUM – 69 pc
Export customers – 21 pc
Other customers – 10 pc
FY 24 revenue break up –
Govt projects – 945 cr
Exports – 286 cr ( export segment has the highest margins )
Others ( including Industrial, OEM, Retail ) – 139 cr
New opportunities –
Incorporated a fully owned subsidiary – Shakti EV mobility – to manufacture EV motors, charging stations, BMS, electric control panels , VFDs and other items. Have sanctioned an investment of 115 cr for the same
PM KUSUM –
Total mkt size of solar pumps under PM KUSUM scheme ( @ Rs 3 lakh / pump ) = 1.47 lakh cr ( for installation of 49 lakh solar pumps )
Out of these, 4 lakh pumps have already been installed. So the remaining opportunity is for 45 lakh pumps to be executed over the next few years
Q1 outcomes –
Revenues – 568 vs 113 cr
EBITDA – 136 vs 8 cr ( margins @ 24 vs 7 pc ). Margin expansion due operating leverage and reduced RM prices
PAT – 93 vs 1 cr
Likely to execute orders worth Rs 2000 cr ( orders in hand ) in next 5 Qtrs
Guiding for a topline of 1700 cr + for FY 25 ( this despite the upcoming state elections in Maharashtra and Haryana – 02 major states where the company is currently supplying )
Company expects the orders Under component C of PM KUSUM scheme to start flowing in about 6 months time
Avg lifecycle to these solar pumps is about 10 yrs
According to the management, the opportunities in the Industry give them hope of being able to grow @ around 25 pc CAGR for next 2-3 yrs as well
Long term EBITDA margin guidance given by the company is in the band of 15-16 pc ( 20 pc plus margins seen in last 2 Qtrs may not be sustainable )
Company continues to spend aggressively on R&D – management believes, this is their company’s lifeline
Company’s existing capacity can generate a max revenue of 2500 cr. Company can keep de-bottlenecking this capacity to meet business requirements. In addition, company has raised 200 cr via QIP to be used to fund doubling of existing facility. The same shall materialise by FY 27
Disc: holding, biased, not SEBI registered
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