Financial Results: Shakti Pumps Reports Stunning Profits In Q1

Financial Results: Shakti Pumps Reports Stunning Profits In Q1

Indian solar pump manufacturer Shakti Pumps (India) Limited (SPIL) has now published its financial results for the first quarter (Q1) for the financial year 2024-25 ending June 30. The Madhya Pradesh-based renewable energy company has reported an increase in its net profit on a Year-On-Basis (YoY).

The financial results revealed that the company’s revenue increased to Rs. 567.6 Crores in Q1FY25 as compared to Rs. 113.1 Crores in Q1FY24. It also reported an increase in its Profit After Tax (PAT) to Rs. 92.6 Crores in Q1FY25 from Rs. 1.0 Crores in Q1FY24. PAT Margin expanded to 16.3% in Q1FY25 from 0.9% in Q1FY24.

The company in its corporate filing before BSE said that its EBITDA stood at Rs. 135.9 Crores in Q1FY25 as against Rs. 7.9 Crores in Q1FY24. EBITDA Margin stood at 23.9% in Q1FY25 as against 7.0% in Q1YF24, largely driven by economies of scale and higher execution rate, it said.

The company is known for its production of solar stainless-steel submersible pumps, pressure booster pumps, pump-motors, controllers, and inverters among other products. Besides supplying their products in India, the company also has revenues from their exports to other countries. The company management attributed the increase in their profit margins to the plunge in prices of the raw materials and economies of scale.

Why Profit Margins Rose?

“We are pleased to report an outstanding start to the Financial Year 2025, with the first quarter demonstrating robust revenue growth and enhanced profitability. This commendable performance is attributable to the accelerated execution of the existing orders in both domestic and export markets. Furthermore, the improvement in margins was achieved due to a decline in raw material prices, coupled with economies of scale resulting from higher execution during the quarter,” Dinesh Patidar, Chairman of Shakti Pumps (India) Limited said.

The management of Shakti Pumps said that they continue to maintain a healthy order book of approximately Rs 2,000 crores as on 30th June 2024, which is expected to be implemented in the next 15 months. “We are also optimistic about the prospective order inflow from various states in the upcoming quarters, which we believe will contribute significantly to our growth trajectory.” Patidar said.

About Shakti Pumps 

Shakti Pumps India Limited (SPIL) was founded in 1982 as a partnership firm and later converted to a public limited company in 1995. It manufactures solar pumps, energy-efficient stainless-steel submersible pumps, pressure booster pumps, pump-motors, and other
products. SPIL said that it is the only company that manufactures a wide range of products for solar pump installation in-house,
including Variable Frequency Drives, Structures, Motors, Invertors, and so on.

Pithampur, Madhya Pradesh, is home to two manufacturing facilities with a combined capacity of 500,000 pumps and motors per year (India). Shakti Pumps also has the distinction of being India’s first 5-star rated pump manufacturer, supplying its products to more than 100 countries across the globe and manufacturing its own solar pumps, motors, structures, controllers & VFDs.