Home / Transcripts / Shakti Pumps (India) Limited (531431) · August 14, 2023

Shakti Pumps (India) Limited (531431) Earnings Call Transcript

August 14, 2023

BSE Limited IN Industrials Machinery earnings 48 min

Earnings Call Speaker Segments

Operator operator
#1

Ladies and gentlemen, good day, and welcome to the Shakti Pumps (India) Limited Q1 FY '24 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rohit Anand from Ernst & Young LLP. Thank you, and over to you.

Rohit Anand attendee
#2

Before we proceed, let me remind you that discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our businesses that would cause future results, performance or achievements to differ significantly from what is expressed or implied by such forward-looking statements to take us forward through the financial results and development. And to answer your question today, we have the senior management of Shakti Pumps (India) Limited represented by Mr. Dinesh Patidar, Chairman; Mr. Ramesh Patidar, Managing Director; Mr. Dinesh Patel, Chief Financial Officer; and Mr. Ravi Patidar, CS and Compliance Officer. We will start the call with an overview of this past quarter by Mr. Dinesh Patidar followed by our Q&A session. I will now hand over the call to Mr. Patidar. Over to you, sir.

Dinesh Patidar executive
#3

[Interpreted] Thank you, sir. Good afternoon. Revenue from operations stood at 1,131 million in Q1 FY '24. Our export business registered a revenue of INR 647 million and has continued to grow strongly by 59% Y-o-Y from INR 407 million in Q1 FY '22. EBITDA for the quarter was INR 79 million and EBITDA margin was at 7%. Paid for the quarter stood at INR 10 million. We have adequate liquidity and has a strong credit profile backed by our established market position on account of a robust distribution network and diversified product portfolio. With our strong balance sheet and the key metrics, we are confident in the timely completion of Kusom orders and further consolidated our position in the market. With this, now I request the moderator to open the floor for question and answer.

Operator operator
#4

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have our first question from the line of [ Digant Haria ] from [indiscernible].

Unknown Analyst analyst
#5

[Foreign Language]

Dinesh Patidar executive
#6

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Unknown Analyst analyst
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Dinesh Patidar executive
#8

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Unknown Analyst analyst
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Dinesh Patidar executive
#10

[Foreign Language]

Operator operator
#11

We have our next question from the line of Ankit from JHP Securities.

Ankit Shah analyst
#12

[Foreign Language]

Dinesh Patidar executive
#13

[Foreign Language]

Ankit Shah analyst
#14

[Foreign Language]

Dinesh Patidar executive
#15

[Foreign Language]

Operator operator
#16

We have our next question from line of [ Mira Ashar ] from Latin Manharlal Securities.

Unknown Analyst analyst
#17

Sir, thank you for the opportunity. [Foreign Language]

Dinesh Patidar executive
#18

[Foreign Language]

Unknown Analyst analyst
#19

[Foreign Language]

Dinesh Patidar executive
#20

[Foreign Language]

Unknown Analyst analyst
#21

[Foreign Language]

Dinesh Patidar executive
#22

[Foreign Language]

Unknown Analyst analyst
#23

That should be executed within the next 2 years, right?

Dinesh Patidar executive
#24

Right.

Unknown Analyst analyst
#25

[Foreign Language]

Dinesh Patidar executive
#26

[Foreign Language]

Unknown Analyst analyst
#27

Okay. And sir, do we have the enough manpower to handle such a big opportunity, which is going to come ahead in next 2 to 3 years?

Dinesh Patidar executive
#28

Definitely, both is ready.

Operator operator
#29

We have our next question from the line of [ Ram Sider ] from Mandurah Capital.

Unknown Analyst analyst
#30

[Foreign Language] Can you give me approximately how much profit you can make for some?

Dinesh Patidar executive
#31

[Foreign Language]

Unknown Analyst analyst
#32

No. Can you give me some numbers, net or something like that?

Dinesh Patidar executive
#33

[Foreign Language]

Unknown Analyst analyst
#34

[Foreign Language]

Dinesh Patidar executive
#35

[Foreign Language]

Unknown Analyst analyst
#36

[Foreign Language]

Operator operator
#37

We have our next question from the line of Harshil Solanki from Equitree Capital.

Harshil Solanki analyst
#38

Good afternoon. Sir, there are multiple questions here. [Foreign Language]

Dinesh Patidar executive
#39

[Foreign Language]

Harshil Solanki analyst
#40

Sir, volume?

Dinesh Patidar executive
#41

[Foreign Language]

Harshil Solanki analyst
#42

[Foreign Language]

Dinesh Patidar executive
#43

[Foreign Language]

Harshil Solanki analyst
#44

[Foreign Language]

Dinesh Patidar executive
#45

[Foreign Language]

Harshil Solanki analyst
#46

[Foreign Language]

Dinesh Patidar executive
#47

[Foreign Language]

Harshil Solanki analyst
#48

[Foreign Language]

Dinesh Patidar executive
#49

[Foreign Language]

Harshil Solanki analyst
#50

[Foreign Language]

Dinesh Patidar executive
#51

[Foreign Language]

Harshil Solanki analyst
#52

[Foreign Language]

Dinesh Patidar executive
#53

[Foreign Language]

Harshil Solanki analyst
#54

[Foreign Language]

Dinesh Patidar executive
#55

[Foreign Language]

Harshil Solanki analyst
#56

[Foreign Language]

Dinesh Patidar executive
#57

[Foreign Language]

Harshil Solanki analyst
#58

[Foreign Language]

Dinesh Patidar executive
#59

[Foreign Language]

Harshil Solanki analyst
#60

[Foreign Language]

Dinesh Patidar executive
#61

[Foreign Language]

Operator operator
#62

[Operator Instructions] We'll take the next question from the line of [ Par Marta ], an individual investor.

Unknown Analyst analyst
#63

[Foreign Language]

Dinesh Patidar executive
#64

[Foreign Language]

Unknown Analyst analyst
#65

[Foreign Language]

Dinesh Patidar executive
#66

[Foreign Language]

Unknown Analyst analyst
#67

[Foreign Language]

Dinesh Patidar executive
#68

[Foreign Language]

Unknown Analyst analyst
#69

[Foreign Language] So are we going to get back to that number any time soon? [Foreign Language]

Dinesh Patidar executive
#70

[Foreign Language]

Unknown Analyst analyst
#71

[Foreign Language]

Dinesh Patidar executive
#72

[Foreign Language]

Unknown Analyst analyst
#73

[Foreign Language]

Dinesh Patidar executive
#74

[Foreign Language]

Unknown Analyst analyst
#75

[Foreign Language]

Dinesh Patidar executive
#76

[Foreign Language]

Unknown Analyst analyst
#77

My last question was [Foreign Language]

Dinesh Patidar executive
#78

[Foreign Language]

Unknown Analyst analyst
#79

Okay. So are you expecting that the second half of the year should be [Foreign Language]

Dinesh Patidar executive
#80

[Foreign Language]

Operator operator
#81

We have our next question from the line of [ Ketan Tale ] from Robo Capital.

Unknown Analyst analyst
#82

[Foreign Language]

Dinesh Patidar executive
#83

[Foreign Language]

Unknown Analyst analyst
#84

Okay, and margin?

Dinesh Patidar executive
#85

[Foreign Language]

Operator operator
#86

We have our next question from the line of [ Ashok, ] an individual Investor.

Unknown Analyst analyst
#87

[Foreign Language]

Dinesh Patidar executive
#88

[Foreign Language]

Unknown Analyst analyst
#89

[Foreign Language]

Dinesh Patidar executive
#90

[Foreign Language]

Unknown Analyst analyst
#91

[Foreign Language]

Dinesh Patidar executive
#92

[Foreign Language]

Unknown Analyst analyst
#93

[Foreign Language]

Dinesh Patidar executive
#94

[Foreign Language]

Operator operator
#95

Next question is from the line of [ Ajay Suria ] from [indiscernible].

Unknown Analyst analyst
#96

[Foreign Language]

Dinesh Patidar executive
#97

[Foreign Language]

Unknown Analyst analyst
#98

[Foreign Language]

Dinesh Patidar executive
#99

[Foreign Language]

Operator operator
#100

Next question is from the line of [ Ketan Drua ], an Individual Investor.

Unknown Analyst analyst
#101

Sir, I have 2 questions. First question, I just wanted to say in the context of the competition that you have because of the delay in the Kusum orders over the last 1.5 years. So I've seen some of your companies like [ KB and Pinatel ], the people actually also having one of their own pump systems, and they say they want to enter at least case, we said that we want to do this in a big way. So do you see any impact of that in terms of your market share or use share?

Dinesh Patidar executive
#102

[Foreign Language]

Unknown Analyst analyst
#103

The second question, it was on the margins. But I think you already mentioned that you will do 10%. The third question I had was this capacity. After capacity was 5 lakh pumps per annum, right? And if you are doing 10,000 pumps per month, it will still be a fraction of what you are capable of. Is that correct, sir?

Dinesh Patidar executive
#104

[Foreign Language]

Unknown Analyst analyst
#105

[Foreign Language] And specifically on the pricing of the last time policy average price is around INR 2.8 to INR 3 lakhs per pump. Is that still holding good even with the new Kusom?

Dinesh Patidar executive
#106

Yes. So margin increase [ wide ].

Operator operator
#107

[Operator Instructions] We have a next question from the line of [ Jatin Koradia ], an investor.

Unknown Analyst analyst
#108

[Foreign Language]

Dinesh Patidar executive
#109

[Foreign Language]

Unknown Analyst analyst
#110

[Foreign Language]

Dinesh Patidar executive
#111

[Foreign Language]

Unknown Analyst analyst
#112

[Foreign Language]

Dinesh Patidar executive
#113

[Foreign Language]

Operator operator
#114

Thank you. We have our next question from the line of Sanjay Kumar from [ iTOPS ].

Unknown Analyst analyst
#115

To position, you mentioned that Stability has successfully developed motors and AV controllers, any talk about this, what's the technology of the moat BLDC or PMS or the newer scales selectins motors? What is the market currently and what market share you have comical.

Dinesh Patidar executive
#116

[Foreign Language]

Unknown Analyst analyst
#117

Which segment, sir? Is it 2-wheelers, 3-wheelers...

Dinesh Patidar executive
#118

[Foreign Language]

Unknown Analyst analyst
#119

[Foreign Language]

Dinesh Patidar executive
#120

[Foreign Language]

Unknown Analyst analyst
#121

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Dinesh Patidar executive
#122

[Foreign Language]

Operator operator
#123

We have a next question from the line of [ Denis Nara ] from Harsh Investments.

Unknown Analyst analyst
#124

[Foreign Language]

Dinesh Patidar executive
#125

[Foreign Language]

Unknown Analyst analyst
#126

[Foreign Language]

Dinesh Patidar executive
#127

[Foreign Language]

Unknown Analyst analyst
#128

[Foreign Language]

Dinesh Patidar executive
#129

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Unknown Analyst analyst
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Dinesh Patidar executive
#131

[Foreign Language]

Unknown Analyst analyst
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Dinesh Patidar executive
#133

[Foreign Language]

Unknown Analyst analyst
#134

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Dinesh Patidar executive
#135

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Unknown Analyst analyst
#136

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Dinesh Patidar executive
#137

[Foreign Language]

Operator operator
#138

We have our next question from the line of [ Param Maki ] from JHP.

Unknown Analyst analyst
#139

[Foreign Language]

Dinesh Patidar executive
#140

[Foreign Language]

Unknown Analyst analyst
#141

[Foreign Language]

Dinesh Patidar executive
#142

[Foreign Language]

Unknown Analyst analyst
#143

[Foreign Language]

Dinesh Patidar executive
#144

[Foreign Language]

Unknown Analyst analyst
#145

[Foreign Language] So what is giving us the confidence at this point online within the next, say, 1 or 2 quarters?

Dinesh Patidar executive
#146

[Foreign Language]

Unknown Analyst analyst
#147

[Foreign Language]

Dinesh Patidar executive
#148

[Foreign Language]

Unknown Analyst analyst
#149

[Foreign Language]

Dinesh Patidar executive
#150

[Foreign Language]

Operator operator
#151

Ladies and gentlemen, due to time constraints that was the last question for today. I now hand over the call to Mr. Dinesh Patidar for closing comments. Over to you, sir.

Dinesh Patidar executive
#152

[Foreign Language] Thank you.

Operator operator
#153

Thank you. On behalf of Shakti Pumps (India) Limited, that concludes your conference. Thank you for joining us, and you may now disconnect your lines. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]

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