Podcast
Questions and Answers
What was the order book value in the previous presentation?
What was the order book value in the previous presentation?
- INR 2400 crores
- INR 2000 crores (correct)
- INR 2600 crores
- INR 1800 crores
What percentage of the work has been completed in the Uganda project?
What percentage of the work has been completed in the Uganda project?
- 40% (correct)
- 50%
- 60%
- 30%
What issue is being prioritized over business in Bangladesh?
What issue is being prioritized over business in Bangladesh?
- Financial constraints
- Political situation (correct)
- Infrastructural challenges
- Supply chain disruptions
What is the main concern about the order book, according to Dinesh Patidar?
What is the main concern about the order book, according to Dinesh Patidar?
What does Dinesh Patidar imply about the future of new orders?
What does Dinesh Patidar imply about the future of new orders?
How did Deepak Purswani perceive the order book's incremental growth?
How did Deepak Purswani perceive the order book's incremental growth?
What is the significance of execution mentioned by the management?
What is the significance of execution mentioned by the management?
Who is tasked with providing more details about the Uganda project?
Who is tasked with providing more details about the Uganda project?
What can be assumed about the gross margin in the near term according to Dinesh Patel?
What can be assumed about the gross margin in the near term according to Dinesh Patel?
Which factor is NOT mentioned as influencing gross margin in the discussion?
Which factor is NOT mentioned as influencing gross margin in the discussion?
What specific aspect of the KUSUM scheme was highlighted by Ajay Surya in his question?
What specific aspect of the KUSUM scheme was highlighted by Ajay Surya in his question?
What is the general trend of raw material prices observed over the last three quarters?
What is the general trend of raw material prices observed over the last three quarters?
Which of the following roles is associated with Shakti Pumps in relation to KUSUM Component C?
Which of the following roles is associated with Shakti Pumps in relation to KUSUM Component C?
What is suggested regarding the future inflation of raw material costs, as per Dinesh Patel?
What is suggested regarding the future inflation of raw material costs, as per Dinesh Patel?
What did Ramesh Patidar indicate about their business pipeline?
What did Ramesh Patidar indicate about their business pipeline?
What can be expected in terms of guidance for gross margin as development progresses?
What can be expected in terms of guidance for gross margin as development progresses?
What was the revenue from operations reported in Q2 FY '25?
What was the revenue from operations reported in Q2 FY '25?
What was the EBITDA margin in Q2 FY '25?
What was the EBITDA margin in Q2 FY '25?
What was the earnings per share (EPS) in H1 FY '25?
What was the earnings per share (EPS) in H1 FY '25?
What percentage increase in revenue was reported for H1 FY '25 compared to H1 FY '24?
What percentage increase in revenue was reported for H1 FY '25 compared to H1 FY '24?
What did the PAT margin increase to in Q2 FY '25?
What did the PAT margin increase to in Q2 FY '25?
How much did EBITDA increase in Q2 FY '25 compared to Q2 FY '24?
How much did EBITDA increase in Q2 FY '25 compared to Q2 FY '24?
What is the current credit rating of the company?
What is the current credit rating of the company?
Which factor contributed significantly to the EBITDA margin expansion?
Which factor contributed significantly to the EBITDA margin expansion?
What is the average price of the pump mentioned in the discussion?
What is the average price of the pump mentioned in the discussion?
What is implied to influence the future pricing of the solar pumps?
What is implied to influence the future pricing of the solar pumps?
By what date must Kusum component B be executed according to the dialogue?
By what date must Kusum component B be executed according to the dialogue?
What could potentially decrease the margin for Shakti Pumps in the future?
What could potentially decrease the margin for Shakti Pumps in the future?
What is necessary for the business to become sustainable according to Dinesh Patidar?
What is necessary for the business to become sustainable according to Dinesh Patidar?
What does Ajay Surya inquire about concerning the rate card for Kusum component B?
What does Ajay Surya inquire about concerning the rate card for Kusum component B?
What factor does Dinesh Patidar suggest will not provide correct information about pump pricing?
What factor does Dinesh Patidar suggest will not provide correct information about pump pricing?
What is the selling price of the 3HP pump mentioned in the exchange?
What is the selling price of the 3HP pump mentioned in the exchange?
What is the projected peak revenue from the new capacity according to Dinesh Patel?
What is the projected peak revenue from the new capacity according to Dinesh Patel?
How long is it expected to take before the new capacity is completely commenced?
How long is it expected to take before the new capacity is completely commenced?
What minimum revenue guideline was set for the next quarter?
What minimum revenue guideline was set for the next quarter?
What percentage growth was mentioned as guidance in the last conference call?
What percentage growth was mentioned as guidance in the last conference call?
What did Dinesh Patidar mention about the company's capacity concerns?
What did Dinesh Patidar mention about the company's capacity concerns?
What was the revenue achieved last quarter as mentioned by Dinesh Patidar?
What was the revenue achieved last quarter as mentioned by Dinesh Patidar?
How does Dinesh Patidar feel about the company's capacity in the coming quarters?
How does Dinesh Patidar feel about the company's capacity in the coming quarters?
What is indicated about the company's expertise as expressed by Dinesh Patidar?
What is indicated about the company's expertise as expressed by Dinesh Patidar?
What is the total revenue of Shakti Pumps (India) Limited after the new capacity is added?
What is the total revenue of Shakti Pumps (India) Limited after the new capacity is added?
What is the expected growth margin range for Shakti Pumps in the next quarter?
What is the expected growth margin range for Shakti Pumps in the next quarter?
What is the minimum EBITDA margin guideline set by the management board?
What is the minimum EBITDA margin guideline set by the management board?
How much outstanding amount is reported for the last two quarters?
How much outstanding amount is reported for the last two quarters?
How many orders are received from Rajasthan each quarter?
How many orders are received from Rajasthan each quarter?
What is the order value expected for the next year mentioned by Dinesh Patel?
What is the order value expected for the next year mentioned by Dinesh Patel?
What is the historical trend of outstanding receivables at the end of each quarter?
What is the historical trend of outstanding receivables at the end of each quarter?
How much was the order received from UP in the last quarter?
How much was the order received from UP in the last quarter?
Flashcards
Revenue from Operations
Revenue from Operations
Revenue generated from core business operations; it excludes non-operating income like interest or investments.
EBITDA
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization; a measure of a company's operating profitability.
EBITDA Margin
EBITDA Margin
The ratio of EBITDA to revenue, representing the percentage of revenue remaining after covering operating costs.
PAT (Profit After Tax)
PAT (Profit After Tax)
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PAT Margin
PAT Margin
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Earnings Per Share (EPS)
Earnings Per Share (EPS)
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Credit rating
Credit rating
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Order book
Order book
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Slowdown in Order Book Growth
Slowdown in Order Book Growth
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Order Book Execution
Order Book Execution
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Project Execution Status
Project Execution Status
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Pipeline of Projects
Pipeline of Projects
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Political Instability
Political Instability
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Project Hold
Project Hold
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Export Director
Export Director
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Capacity Expansion
Capacity Expansion
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Revenue Target
Revenue Target
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Growth Projections
Growth Projections
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Peak Revenue from New Capacity
Peak Revenue from New Capacity
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Exhibition Expertise
Exhibition Expertise
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Total Revenue Capacity
Total Revenue Capacity
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Trade Receivables
Trade Receivables
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TTM (Trailing Twelve Months) Revenue
TTM (Trailing Twelve Months) Revenue
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Order Execution Rate
Order Execution Rate
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Minimum EBITDA Margin Guideline
Minimum EBITDA Margin Guideline
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Order Inflow
Order Inflow
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Grid-based solar pumping
Grid-based solar pumping
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Kusum Component B
Kusum Component B
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Average price of Kusum component B pump
Average price of Kusum component B pump
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Solar pump system components
Solar pump system components
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Technology's impact on solar pump prices
Technology's impact on solar pump prices
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Raw material cost impact on solar pumps
Raw material cost impact on solar pumps
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Global factors influencing solar pump prices
Global factors influencing solar pump prices
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Potential for rate revision in Kusum component B
Potential for rate revision in Kusum component B
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What is KUSUM Component C?
What is KUSUM Component C?
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What is FLS in the context of KUSUM Component C?
What is FLS in the context of KUSUM Component C?
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What is Shakti Pumps' role in KUSUM Component C?
What is Shakti Pumps' role in KUSUM Component C?
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How does raw material cost affect the company's gross margin?
How does raw material cost affect the company's gross margin?
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What are the company's international expansion plans?
What are the company's international expansion plans?
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What is the company's outlook on raw material costs in the near future?
What is the company's outlook on raw material costs in the near future?
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What information does the company reveal about its international projects?
What information does the company reveal about its international projects?
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What is the current trend in the company's gross margin?
What is the current trend in the company's gross margin?
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Study Notes
Shakti Pumps Earnings Conference Call Q2 & H1 FY25
- Date: October 28, 2024
- Company: Shakti Pumps (India) Limited
- Management: Dinesh Patidar (Chairman), Ramesh Patidar (Managing Director), Dinesh Patel (Chief Financial Officer), Ravi Patidar (CS & Compliance Officer)
- Moderator: Rohit Anand (Ernst & Young LLP)
Financial Highlights Q2 FY25
- Revenue: INR635 crores (record high, 3x last year's Q2)
- Operating Profit: INR149 crores (increased from INR136 crores in Q1)
- PAT: INR101 crores (16x last year's Q2)
- EBITDA: INR148.7 crores, a margin of 23.4% (increase from Q1 and 10% in Q2 FY24).
- H1 FY25 Revenue: INR1,202.2 crores (3.5x increase from H1 FY24).
- H1 FY25 EBITDA: INR284.6 crores (23.7% margin)
- H1 FY25 PAT: INR194.1 crores
- Outstanding Orders: INR 1,800 crores as of Sep 24
- 15th Patent granted: for VFD technology.
- Bonus Issue: 5:1 recommended by the board.
Key Discussion Points
- Management Highlights: Record-breaking revenue and profits, 3x growth in Q2 over last year's quarter. The growth is attributed to exports and domestic sales.
- Capacity: Company has expanded capacity, plans for further expansion, but existing capacity is sufficient for INR2500 crores.
- Raw Materials: Raw materials costs are stable, impacting the margins. Copper, stainless steel and solar panels are the key materials.
- Solar Pumps: Successful order fulfillment, expanding presence in the retail sector.
- Future Outlook: Strong orders, revenue exceeding INR1800 crores is targeted.
- Order Book: Significant order book of INR1,800 crores.
- Capacity: Sufficient production capacity to meet the current order book. Further expansion is expected, however the immediate capacity is not the bottleneck.
- Margin Sustainability: Margins are stable despite raw materials cost.
- Receivables: Concerns addressed regarding receivables, with money secured and consistent payment flow from state governments.
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