Shakti Pumps Jul-24

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Questions and Answers

What was the revenue reported for the first quarter of Financial Year 2025?

Rs. 500 crores

Rs. 93 crores

Rs. 567.6 crores

Rs. 568 crores (correct)

By how much did the Profit After Tax increase in this quarter compared to the previous year?

From Rs. 1 crores to Rs. 93 crores (correct)

From Rs. 1 crores to Rs. 50 crores

From Rs. 10 crores to Rs. 93 crores

From Rs. 1 crores to Rs. 136 crores

What was the EBITDA reported for the first quarter?

Rs. 500 crores

Rs. 136 crores (correct)

Rs. 568 crores

Rs. 93 crores

What percentage decline in raw material prices was achieved during the quarter?

3% Signup and view all the answers

What is the expected orderbook value to be implemented in the next 15 months?

Rs. 2,000 crores Signup and view all the answers

How many total patents have been granted to the company as of the recent quarter?

14 patents Signup and view all the answers

What factor is expected to influence the completion of orders in Q2?

Monsoon season in India Signup and view all the answers

What was the approximate increase in revenue compared to the same quarter last year?

Four times higher Signup and view all the answers

What is the expected percentage increase in revenues despite the uncontrollable issues?

30% Signup and view all the answers

Which raw material was primarily negotiated for cost reduction?

Solar Panels Signup and view all the answers

What factors could slow down installation activities according to the discussion?

Rainy season and upcoming elections Signup and view all the answers

What is the total planned number of pumps under the KUSUM scheme?

17.5 lakh Signup and view all the answers

What is NOT a major raw material mentioned in the discussion?

Aluminum Signup and view all the answers

What financial contribution is required from the farmer for the project?

25% to 40% Signup and view all the answers

How has the tendering process for pumps been structured under the KUSUM scheme?

Under a rate contract without limitation on numbers Signup and view all the answers

What information is not provided by Dinesh Patidar regarding the tendering?

Total percentage of pumps tendered Signup and view all the answers

What is the primary focus of Shakti Pump as mentioned by Dinesh Patidar?

Research and development in Power Electronics and Motors Signup and view all the answers

How many PhD holders from IITs does Shakti Pump have?

8 Signup and view all the answers

What role does H.S. Patel hold in the company?

Independent Director Signup and view all the answers

What is the time frame mentioned for doubling capacity at Shakti Pump?

FY27 Signup and view all the answers

Which scheme is mentioned in relation to grid-connected pumps?

KUSUM scheme Signup and view all the answers

What is the cost mentioned for connecting electricity to a 5 HP pump?

Rs. 2 lakhs Signup and view all the answers

Who was recently appointed as a Director of the Company from the Export Department?

Mr. Ashwin Bothra Signup and view all the answers

What is the main purpose of bringing experienced individuals onto the Board, according to Dinesh Patidar?

To guide R&D efforts and avoid mistakes Signup and view all the answers

What is the planned investment for Shakti EV Mobility over the next two years?

Rs. 250 crores Signup and view all the answers

In which sectors will Shakti EV Mobility manufacture motors and controllers?

2-wheelers, 3-wheelers, 4-wheelers, and buses Signup and view all the answers

What is the current status of the buses being run as per the discussion?

There are 2000 buses running Signup and view all the answers

How many pumps were installed under KUSUM 3 in the last quarter?

15,000 pumps Signup and view all the answers

What requirement does the central government's Atmanirbhar Bharat program focus on?

Manufacturing products in India Signup and view all the answers

What was the revenue generated from the installed pumps in KUSUM 3 for the last quarter?

Rs. 445 crores Signup and view all the answers

What did Dinesh Patidar indicate about the progress in doubling the capacity of solar pumps?

It is on track Signup and view all the answers

What is the estimated revenue potential from the new initiative like Component C?

Rs. 150 crores Signup and view all the answers

Why does Shakti EV Mobility believe there is a good opportunity for manufacturing EV motors in India?

Lack of large-scale manufacturing in India Signup and view all the answers

What is the purpose of the NDA mentioned in the discussion?

To protect the names of suppliers from competitors Signup and view all the answers

Which organizations are funding the projects mentioned in the content?

UNICEF and World Bank Signup and view all the answers

How long has the company been making motors according to Dinesh Patidar?

40 years Signup and view all the answers

What percentage growth does the company expect in the next 3-4 years?

30% Signup and view all the answers

How has the SBI Mutual Fund recently affected its stake according to the discussion?

Diluted its stake a little Signup and view all the answers

What type of project is the company continuing related to the subsidiary's work?

Government funded project Signup and view all the answers

What is the primary focus area that Dinesh Patidar mentions for the future?

Focusing on the cash market Signup and view all the answers

What is a significant reason for the company to start projects funded by UNICEF and the World Bank?

To provide services within specific terms and conditions Signup and view all the answers

How is the tendering process for the pumps described?

It is ongoing with orders being fulfilled regularly. Signup and view all the answers

What percentage of subsidy is mentioned for the pumps provided by central and state governments?

60% Signup and view all the answers

What trend is indicated regarding farmers and subsidy for solar pumps?

Farmers are rapidly moving to the cash market. Signup and view all the answers

Which market strategy does Dinesh Patidar emphasize for the company's future growth?

Strengthening relationships with small dealers Signup and view all the answers

What is the role of farmers in the order-making process for KUSUM?

Farmers choose their orders themselves. Signup and view all the answers

What challenge does Dinesh Patidar identify regarding future sales strategies?

Limited understanding of cash market dynamics Signup and view all the answers

According to the discussed market trends, what is the effect of the cash market on the company's strategy?

It increases the need for branding and quality focus. Signup and view all the answers

Study Notes

Q1 FY25 Earnings Conference Call - Shakti Pumps (India) Limited

Date: July 22, 2024

Management

Chairman: Mr. Dinesh Patidar
Managing Director: Mr. Ramesh Patidar
Chief Financial Officer: Mr. Dinesh Patel
CS & Compliance Officer: Mr. Ravi Patidar

Analyst

Ernst & Young LLP: Mr. Rohit Anand

Financial Highlights (Q1 FY25)

Revenue: Rs. 568 crores (4x higher than Q1 FY24)
Profit After Tax: Rs. 93 crores (increased from Rs. 1 crore in Q1 FY24)
EBITDA: Rs. 136 crores
EBITDA Margin: 23.9% (increase from 7% in Q1 FY24)
PAT Margin: 16.3% (increase from 0.9% in Q1 FY24)

Order Book and Market Outlook

Order Book: Rs. 2,000 crore expected to be implemented in 15 months
Q2 Target: Rs. 500 crore expected depending on monsoon
Technology and Innovation: 14 patents filed (with 29 total applications)
Market Share: Growth of at least 30% target over FY24 and aiming towards 1750 crore revenue target
Competition: Companies are entering the market; however, the profitability and technology is a key differentiator

Future Plans and Strategies

Expansion: The company plans to maintain a 30% year-on-year revenue growth rate and a 15-16% EBITDA margin

Additional Information

EV Mobility: The company plans to invest Rs. 250 crores in the next two years to expand into EV motors, controllers, and other related products.
Credit Rating: The company's long-term credit rating has been upgraded to A+ stable by India Ratings & Research.

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Description

This quiz covers the key highlights from the Q1 FY25 earnings conference call of Shakti Pumps (India) Limited. Learn about financial performance, management insights, and future market outlook as presented on July 22, 2024. Test your knowledge on revenue growth, profit margins, and order book expectations.