Shakti Pumps (India) (531431) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue reached ₹570.52 crore, a fourfold increase year-over-year, with net profit rising from ₹1 crore to ₹92.66 crore and EBITDA at ₹135.9 crore, driven by accelerated execution, economies of scale, and lower raw material costs.

• The order book stood at ₹2,000 crore as of June 30, 2024, expected to be executed over the next 15 months, with strong prospects for further inflow from state governments and exports.

• Major growth attributed to stabilization and strong demand from the KUSUM scheme, government initiatives, and a diversified business model.

• Focus is increasing on industrial and domestic retail segments, leveraging technological expertise.

• The results were reviewed and approved by the Audit Committee and Board on July 20, 2024.

Financial highlights

• Q1 FY25 revenue from operations was ₹570.52 crore, up 402% year-over-year; EBITDA was ₹135.9 crore (23.9% margin), and PAT was ₹92.66 crore (16.3% margin).

• Basic EPS for Q1 FY25 was ₹46.24, up from ₹0.54 in Q1 FY24.

• Receivables as of June 3, 2024: ₹880 crore.

• Revenue from KUSUM III in Q1: ₹455 crore from 15,000 pumps.

• FY24 revenue was ₹1,370 crore, up 41.7% year-over-year; FY24 EBITDA was ₹224.8 crore (16.4% margin); FY24 PAT was ₹141.7 crore (10.3% margin).

Outlook and guidance

• Minimum 30% year-on-year revenue growth targeted, with FY25 revenue guidance of ₹1,750 crore.

• Q2 FY25 revenue expected around ₹500 crore, factoring in seasonality and elections.

• EBITDA margin guidance maintained at 15–16% for the medium term.

• Management expects continued growth, supported by a strong order book and anticipated new orders from state governments and exports.

• Capacity expansion to double by 2027, supporting up to ₹5,000 crore in revenue.