Shakti Pumps Records Exports Growth by 12.7% YoY in Q2FY24

Shakti Pumps (India) Limited, a manufacturer of stainless-steel submersible pumps, pressure booster pumps, pump-motors, controllers, and inverters among other products, today announced the financial results for the quarter and half year ended September 30, 2023.

Shakti Pumps (India) Limited Chairman, Dinesh Patidar, commented on the performance, “We are delighted to report that this has been a breakthrough quarter for the company as we started receiving orders under the PM KUSUM III Scheme. Under Component B of the scheme, we received two orders for 17,781 Off-Grid Solar Photovoltaic Water Pumping Systems (SPWPS) amounting to Rs. 651.0 Crores cumulatively (from Haryana Renewable Energy Department and Department of Agriculture, UP). Along with that we have received one Letter of Empanelment for 50,000 SPWPS pumps amounting to Rs. 1,603.0 Crores (from Maharashtra State Electricity Distribution Company Limited) for Component B, for which we expect to start receiving orders in the upcoming quarters. To add to this, we also received our first order under Component C (from Ajmer Vidyut Vitran Nigam Limited) for implementation of 3,011 Grid Connected Solar Water Pumping Systems for Rs. 149.7 Crores. We have already commenced work on some of these orders and will ensure to execute these in desired timeline.”

He further added, “We have been granted four new patents, taking the total to seven patents received, out of the 29 total patents we have applied for. Out of these four new patents, one pertains to our innovation in the EV space where our subsidiary Shakti EV Mobility Pvt. Ltd. has also been making progress. The Company Board has approved an investment of Rs. 114.29 Crores over the next five years in this subsidiary, as we anticipate the EV industry to flourish in the next few years.”

“Going forward the current influx of orders is projected to drive a business upturn in H2FY24. Additionally, the inflow of orders from several other states will further support this trend,” he concluded.

Updates under PM KUSUM Scheme

ORDERS (COMPONENT B & C)
Date	Entity Awarding the Order	# Of Pumps	Order Value	Execution Timeline
Component B
30 August 2023	Haryana Renewable Energy Department (HAREDA)	7,781 pumps	Rs. 358.0 Crores	Within 120 Days from work order received
15 September 2023	Department of Agriculture, Uttar Pradesh	10,000 pumps	Rs. 293.0 Crores	Within 90 days from work order received
Component C
07 October 2023	Ajmer Vidyut Vitran Nigam Limited	3,011 pumps	Rs. 149.7 Crores	Within 9 months from work order received
LETTER OF EMPANELMENT (COMPONENT B)
19 October 2023	Maharashtra State Electricity Distribution Company Limited (MSEDCL)	50,000 pumps	Rs. 1,603.0 Crores	Within 24 Months

 

Key Financial Highlights of the Quarter (Consolidated):

Particulars (Rs Million)	Q2FY24	Q2FY23	YoY	Q1FY24	QoQ	H1FY24	H1FY23	YoY
Revenue from operations	1,528	2,163	(29.4%)	1,131	35.1%	2,658	4,708	(43.5%)
EBITDA	152	124	22.2%	79	91.9%	231	338	(31.5%)
EBITDA Margin	10.0%	5.8%	420 bps	7.0%	294 bps	8.7%	7.2%	153 bps
Profit Before Tax	74	27	171.8%	7	916.7%	81	145	(44.0%)
Profit After Tax	59	19	208.5%	10	488.3%	69	106	(35.5%)
PAT Margin	3.8%	0.9%	296 bps	0.9%	296 bps	2.6%	2.3%	32 bps
Diluted EPS (Rs.)	3.2	1.0	209.7%	0.5	490.7%	3.7	5.8	(35.5%)

 

Financial Highlights

• Revenue in Q2FY24 at Rs. 1,528 Million and at Rs. 2,658 Million in H1FY24
• Exports segment continues its steady growth, up by 12.7% YoY in Q2FY24 at Rs 699 Million. In H1FY24, Exports Revenue grew by 31.1% YoY to Rs. 1,346 Million
• EBITDA at Rs. 152 million in Q2FY24, up by 22.2% YoY, with an EBITDA margin of 10.0%, expanded by 420 bps
• PAT in Q2FY24 increased to Rs. 59 Million from Rs. 19 Million, registering a growth of 208.5% YoY

SPIL has also received further renewal of the Recognition of In-House R&D Unit(s) from the Department of Scientific and Industrial Research until March 31, 2026. The firm has received this recognition in 2018 which was valid till March 31, 2020, which got renewed till March 31, 2023.

The firm has set sights on auguring its business under grid connected pumps under Component C of PM KUSUM and has also been looking at expansion of international presence, contributing to its growth in exports. The firm has already commenced its operations in Uganda and also opened its office in the country to coordinate its expanding business better. The firm exports to more than 100 countries including the US, Australia.