Shakti Pumps May-24

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Questions and Answers

What is the projected revenue mentioned for the next target period?

Rs. 600 crores

Rs. 500 crores

Rs. 450 crores (correct)

Rs. 400 crores (correct)

What was the market share increase mentioned for the recent quarter?

20% to 24%

24% to 26% (correct)

15% to 20%

26% to 30%

What percentage more discharge do their products provide compared to competitors?

10% to 20%

40% to 50%

20% to 30%

30% to 40% (correct)

Which companies were mentioned as clients for making solar successful in the country?

Tata, L&T, Mahindra, and Adani Signup and view all the answers

What market share do they aspire to reach from the current 26%?

30% to 35% Signup and view all the answers

How does the company view achieving a 30% market share?

As a previous accomplishment Signup and view all the answers

What aspect is expected to give their products an edge over competitors?

Higher quality water discharge Signup and view all the answers

Which product category is highlighted as a strength for the company?

VFD drives Signup and view all the answers

What is the total subsidy amount the government is expected to provide in the next two to five years based on a 60% subsidy of Rs. 1.5 lakh opportunity size?

Rs. 90,000 crores Signup and view all the answers

What is the expected topline revenue from achieving a 25% market share over 3 to 5 years?

Rs. 7,000 crores annually Signup and view all the answers

Which company is executing a pilot project of Rs. 150 crores in on-grid pumps in India?

The Company mentioned Signup and view all the answers

What yearly income can a farmer expect to earn by selling electricity, according to the projection?

Rs. 50,000 Signup and view all the answers

What is the overarching theme of the project executed in Ajmer DISCOM?

Transforming farmers into energy producers Signup and view all the answers

What is the estimated amount the company can recover from the entire investment in DISCOM over three years if a pump costs Rs. 5 lakhs?

100% of the investment Signup and view all the answers

Which aspect indicates that the company may have a weak presence in a specific market?

The number of on-grid pumps being lower Signup and view all the answers

How does the company view its ability to gain market share in comparison to its current 25% share?

Optimistic about increasing share Signup and view all the answers

What is the main area of expertise for Shakti Pumps as mentioned?

Motor production Signup and view all the answers

How long has Shakti Pumps been working on developing controllers?

8 to 10 years Signup and view all the answers

What growth percentage does Shakti Pumps aim to guarantee moving forward?

25% to 30% Signup and view all the answers

What was the volume of pumps installed by Shakti Pumps under KUSUM in Q4?

15,000 pumps Signup and view all the answers

According to Dinesh Patidar, what is necessary for significant growth in electric vehicles in the country?

More charging stations Signup and view all the answers

What factor contributed to the EBITDA improvement mentioned by Dinesh Patel?

Decreased raw material price Signup and view all the answers

Dinesh Patidar's statement indicates growth in which sector besides automobiles?

Electric vehicles Signup and view all the answers

Which segment is NOT mentioned as being worked on by Shakti Pumps?

Trucks Signup and view all the answers

What is the expected total capacity after the investment mentioned?

Rs. 5,000 crores Signup and view all the answers

What percentage of sales is associated with exports over the next 2 to 3 years?

20% Signup and view all the answers

What is the value of the Uganda order mentioned?

Rs. 250 crores Signup and view all the answers

What has been the company's approach towards order pipelines?

Having consistent orders for dealers and distributors Signup and view all the answers

How much has been sold out of the Uganda order so far?

Rs. 35 crores Signup and view all the answers

What is the anticipated impact of the forthcoming sales of Rs. 2,500 crores on production planning?

Further planning for production capacity will begin Signup and view all the answers

In which regions is the company expecting to grow in exports?

US and Uganda Signup and view all the answers

What is the primary concern expressed regarding order pipelines?

Possible effects of elections Signup and view all the answers

What is the primary product that Dinesh Patidar's company manufactures?

Variable frequency drives Signup and view all the answers

What percentage of the market share do other players hold according to Dinesh Patidar?

75% Signup and view all the answers

What type of assembly process is currently happening in the pump industry?

Screw assembly Signup and view all the answers

What requirement has been introduced for variable frequency drives (VFD) in India?

ISI mark Signup and view all the answers

What is Dinesh Patidar's current status regarding supplying to OEM customers in the pump industry?

They do not supply to OEM customers yet Signup and view all the answers

What is likely to happen with Chinese products in the Indian market according to Dinesh Patidar?

They will decrease in sales due to regulatory measures Signup and view all the answers

What future plan does Dinesh Patidar foresee for his company regarding VFD supply?

To start supplying frequency drives to other pump manufacturers Signup and view all the answers

In the context of market share, what challenge does Dinesh Patidar identify for small players in the pump industry?

Competition from established companies Signup and view all the answers

What is the primary focus of Dinesh Patidar's company regarding technology?

Investing in technology for new types of pumps Signup and view all the answers

What kind of information does Dinesh Patidar say will be disclosed within 24 hours?

Confirmed orders from new states Signup and view all the answers

Which state is mentioned as a potential target for future orders?

Odisha Signup and view all the answers

How much capacity is planned in the contract with premier and other vendors?

1.5 giga Signup and view all the answers

What does Dinesh Patidar say about the number of pumps produced?

It cannot be specified due to size variation. Signup and view all the answers

What was the guidance that Dinesh Patidar provided for the quarter?

Rs. 500 crores Signup and view all the answers

What does Dinesh Patidar imply about their company strategy in terms of performance?

They aim to under-promise and over-deliver. Signup and view all the answers

What event does Dinesh Patidar invite the listeners to attend?

A site visit to Shakti Pumps Signup and view all the answers

Study Notes

Shakti Pumps (India) Limited Q4 & FY24 Earnings Conference Call

Date: April 29, 2024
Management:
- Mr. Dinesh Patidar - Chairman
- Mr. Ramesh Patidar - Managing Director
- Mr. Dinesh Patel - Chief Financial Officer
- Mr. Ravi Patidar - CS & Compliance Officer
Analyst: Mr. Rohit Anand - Ernst & Young LLP

Financial Highlights (Q4 FY24)

Revenue: Rs. 609.3 crores (233.6% growth YoY)
EBITDA: Rs. 130.7 crores (12-fold growth YoY)
EBITDA Margin: 21.5% (significant increase from 6.0% YoY)
Profit After Tax (PAT): Rs. 89.7 crores (up from Rs. 2.2 crores YoY)
PAT Margin: 14.7% (substantial improvement from 1.2% YoY)

Financial Highlights (FY24)

Revenue: Rs. 1,371 crores (41.7% growth YoY)
EBITDA: Rs. 224.8 crores (237.8% growth YoY)
EBITDA Margin: 16.4% (952 basis points improvement from 6.9% YoY)
PAT: Rs. 141.7 crores (487.2% growth YoY)
PAT Margin: 10.3% (784 basis points improvement from 2.5% YoY)

Order Book & Future Outlook

Order Book: Approximately Rs. 2,400 crores extending revenue visibility for 18 months
FY25-26 Outlook: Aiming to double existing capacity for pumps/motors, inverters/VFDs and structures; expecting a stable EBITDA margin of 14-15%
Expansion Plans: Raising Rs. 200 crores through QIP; acquiring 46 acres of land in Pithampur, Madhya Pradesh for expansion

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Description

This quiz focuses on the projected revenue and market share dynamics in the solar industry over the next target period. It also covers company performance and subsidy expectations that could impact the market landscape. Test your knowledge on key financial metrics and competitive advantages in solar energy.