Shakti Pumps Jul-24

The amount of money a company makes from selling its products or services. It is often expressed as a total revenue figure or a revenue growth percentage.

Earnings after all expenses, taxes, and interest payments are deducted. It represents the company's net profit.

Earnings before interest, taxes, depreciation, and amortization. A key indicator of a company's operating profitability.

The total value of orders that a company has received from customers but not yet fulfilled.

The cost of materials used in producing a product. A decrease in raw material prices can increase a company's profitability.

A reduction in the cost of producing a product or service due to increased production volume.

The process of negotiating with suppliers to secure better prices for raw materials.

A legal document that grants exclusive rights to an invention or innovation.

Shakti EV Mobility is a new subsidiary of the company focused on manufacturing electric vehicle motors.

The company plans to invest 250 crores in the next two years to build a new facility for manufacturing motors.

Shakti EV Mobility will produce motors for various types of electric vehicles, including two-wheelers, three-wheelers, four-wheelers, and buses.

The company has already installed 2,000 electric buses on the road, demonstrating their existing experience in electric vehicle technology.

The company aims to increase the manufacturing of EV motors in India to support the government's 'Atmanirbhar Bharat' (self-reliant India) initiative.

The company has partnered with other companies but is not disclosing their names due to signed non-disclosure agreements (NDA).

The company has a plan to double the production capacity of solar pumps.

The company is on track to achieve its target of doubling the production capacity of solar pumps.

Solar panels, stainless steel, and copper are the primary materials utilized in the manufacturing process.

The company expects revenue growth, but factors like weather, elections, and government funding can affect performance.

The KUSUM program aims to install approximately 17.5 lakh pumps, with farmers contributing a portion of the funds.

A rate contract allows for an unlimited number of pumps to be supplied, with the government and farmers sharing the cost.

The company has secured favorable prices for solar panels and steel, leading to cost savings.

The company's revenue guidance for the full year factors in potential challenges like weather, elections, and funding complexities.

The company anticipates growth in the coming quarters, primarily driven by the expanded KUSUM scheme and the anticipated rise in solar pump demand.

The company's performance may be significantly influenced by external factors like the monsoon season and government policies.

The process of inviting bids or proposals from potential suppliers for a specific project or service to determine the best option. This is often done to ensure quality and competitive pricing.

A platform or system that allows various stakeholders, such as farmers, to view the current availability and distribution of specific resources or products, often government-sponsored, within a region or state.

A government program that encourages the adoption of renewable energy sources, particularly solar energy for irrigation, by providing financial assistance to farmers.

The direct purchase of a product or service without any form of government subsidy or financial assistance.

Strategies or actions taken by a company to establish a strong presence in the market through recognizable branding, positive customer perceptions, and high-quality products.

The amount of financial assistance provided to farmers or individuals to encourage the adoption of specific products or technologies, usually aimed at promoting sustainable practices.

The distribution or allocation of resources, goods, or services to different regions, states, or locations according to specific criteria or needs.

A company focused on research and development (R&D) in the field of power electronics and motors.

They have a team of highly qualified individuals, including 8 PhD holders, 50 Masters, and 100 engineers.

Bringing in external expertise to guide the company's growth and R&D direction.

They aim to double their production capacity by FY27, which means they will significantly increase their output.

A grid-connected pump relies on existing electricity infrastructure for power, while an off-grid pump is independent and uses alternative sources.

A government scheme offering financial support to farmers for installing solar-powered pumps.

The cost of connecting a 5 HP pump to the electricity grid can be high, around Rs. 2 lakhs.

Shakti Pump aims to progress in research and development by bringing experienced individuals who will provide guidance and minimize mistakes.

Shakti Pumps installed approximately 15,000 pumps under the KUSUM 3 scheme during the quarter and generated revenue of around Rs. 445 crores from it.

The company is currently working on a pilot project with a projected value of Rs. 150 crores. If successful, it will open up significant revenue opportunities.

Shakti Pumps plans around 30% growth in the next 3-4 years, but the sustainability of this growth hinges on their existing production capacity and future expansion plans.

UNICEF and World Bank-funded projects present a significant opportunity for Shakti Pumps. These projects often have clear terms and conditions that allow them to provide services, such as supplying pumps to farmers.

The company's decision to start providing services in these projects stems from the belief that they can achieve substantial business growth in this sector, especially considering the government's initiatives.

The company is planning to double the production capacity of its solar pumps. They are currently making good progress towards achieving this goal.

SBI Mutual Fund has decreased its shareholding in Shakti Pumps during the last quarter, but the company declined to elaborate on the specific reasons for this decision during the call.

Shakti Pumps has a new subsidiary called Shakti EV Mobility that focuses on the production of electric vehicle motors. The company plans to invest Rs. 250 crores over the next two years, signifying their commitment to this sector.