Shakti Pumps (India) (531431) Q2 24/25 earnings summary

Executive summary

• Achieved record-breaking Q2 FY25 revenue of ₹634.6 crore, up 315% year-over-year, and H1 FY25 revenue of ₹1,202.2 crore, driven by robust domestic and international order execution.

• Q2 FY25 PAT was ₹101.4 crore, 16x higher than Q2 FY24; H1 FY25 PAT at ₹194.1 crore.

• Order book stood at ₹1,800 crore as of September 2024, with major contributions from government solar pump schemes and leadership in the PM KUSUM Scheme.

• Focus on expanding retail and EV businesses, with significant progress in Uganda and pipeline projects in other countries.

• Board recommended a 5:1 bonus issue, pending shareholder approval.

Financial highlights

• Q2 FY25 EBITDA rose to ₹148.7 crore (23.4% margin), up from ₹15.2 crore (10%) in Q2 FY24; H1 FY25 EBITDA at ₹284.6 crore (23.7% margin), up from ₹23.1 crore (8.7%) in H1 FY24.

• Q2 FY25 EPS was ₹50.6 (vs. ₹3.2 in Q2 FY24); H1 FY25 EPS at ₹96.9 (vs. ₹3.4 in H1 FY24).

• PAT margin improved to 16% in Q2 FY25 (from 3.8%); H1 FY25 PAT margin at 16.1% (from 2.6%).

• Total assets as of September 30, 2024, were ₹1,850.05 crore, up from ₹1,450.31 crore as of March 31, 2024.

• Net cash used in operating activities for H1 FY25 was ₹(20.02) crore, with a significant increase in trade receivables and inventories.

Outlook and guidance

• Minimum revenue guidance of ₹500 crore for Q3 FY25, with management emphasizing conservative estimates.

• Execution of current ₹1,800 crore order book expected within the next 12 months.

• Capacity expansion underway, targeting up to ₹3,200 crore revenue with incremental machinery; long-term peak capacity planned at ₹5,000 crore.

• EBITDA margin guidance maintained at 16–18%; gross margin expected in the 35–40% range.

• Continued focus on expanding presence in retail and EV segments to drive sustained growth.