Shakti Pumps (India) Limited (531431) Earnings Call Transcript
January 29, 2024
Earnings Call Speaker Segments
Ladies and gentlemen, good day, and welcome to the Shakti Pumps (India) Limited Q3 and 9M FY '24 Earnings Conference Call. [Operator Instructions] I now hand the conference over to Mr. Rohit Anand from Ernst & Young LLP. Thank you, and over to you, sir.
Good afternoon, everyone. Before we proceed, let me remind you that the 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 business risks that could cause future result 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, to answer -- and to answer your questions 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 a brief overview of the past quarter by Mr. Patidar, followed by a Q&A session. I will now hand the call to Mr. Patidar. Over to you, sir.
Thank you, Rohit. [Foreign Language] Thank you. Dinesh?
Thank you, sir. Good afternoon, everyone. Recorded revenue from operations of INR 495.6 crores in Q3 FY '24, our highest-ever revenue in a quarter, up by 57.7% Y-o-Y from INR 314.2 crores in Q3 FY '23. Our export business registered revenue of INR 62.2 crores. We have also reported our highest-ever number in terms of profitability. EBITDA for the quarter stood at INR 71 crores as against INR 21.9 crores in Q3 FY '23, increased by 224.2% Y-o-Y. EBITDA margin was at 14.3%, expanded significantly by 735 bps from 7% in the corresponding quarter of last year. PAT for the quarter stood at INR 45.2 crores, recording a robust growth of 301% Y-o-Y from INR 11.2 crores and PAT margin at 9.1%, up by 554 bps from 3.6% in Q3 FY '23. For 9 months FY '24, revenue from operations stood at INR 761.5 crores. EBITDA recorded a robust growth of 69%, reaching to INR 94 crores from INR 55.7 crores in the same period of previous fiscal. EBITDA margin is 12.4% in 9 months FY '24, expanded by 527 bps from 7.1% in 9 months FY '23. PAT for the 9 months FY '24 stood at INR 52 crores as against INR 21.9 crores in 9 months FY '23. PAT margin in 9 months FY '24 was at 6.8%, expanded by 405 bps from 2.8% in 9 months FY '23. With this, now I request the moderator to open the floor for question and answer. Thank you.
[Operator Instructions] The first question is from the line of Vikram from Niveshaay Investment Advisors.
Congratulations for a good set of numbers. So sir, I wanted to inquire on how we are managing volatility in raw material prices. So solar module prices has corrected a lot in last 3, 4 months. So is our higher margin of 14% is due to solar module prices? Or what is main reason behind significant margin improvement?
[Foreign Language]
[Foreign Language]
[Foreign Language]
Okay. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
The next question is from the line of [ Vishal ] from Svan Investments.
Congratulations for a great set of numbers. [Foreign Language]
[Foreign Language]
Okay. Okay. [Foreign Language]
[Foreign Language]
Okay. Okay, sir. [Foreign Language]
[Foreign Language]
Great, sir. Great. [Foreign Language]
[Foreign Language]
Okay. [Foreign Language]
[Foreign Language]
Okay. [Foreign Language]
[Foreign Language]
Okay. Okay. [Foreign Language]
[Foreign Language]
Okay, okay, okay. [Foreign Language] gross margin [Foreign Language] Has mix been a problem?
[Foreign Language]
Okay. Okay. So, Sir, [Foreign Language]
[Foreign Language]
[Foreign Language]
Sir, I'm sorry to interrupt. May I request that you return to the question queue for follow-up questions as there are several participants waiting for their turn?
Okay, okay, fine. Fine.
The next question is from the line of Dhruv Bajaj from Smart Sync Investment Advisory Services.
[Foreign Language]
Yes. [Foreign Language]
Got it, sir. That's helpful, sir. [Foreign Language]
[Foreign Language]
Okay, sir. [Foreign Language]
Sir, may I request that you return to the question queue, sir, for follow-up questions as there are several participants waiting, sir? The next question is from the line of Harshil Solanki from Equitree Capital.
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
Yes, yes. Definitely. [Foreign Language]
Okay, sir. [Foreign Language]
[Foreign Language]
Last question, sir. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
The next question is from the line of [ Ronak ] from RoboCapital.
Hello?
[Foreign Language]
Firstly, congratulations for the good results. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language] That is all from my side.
The next question is from the line of Hardik Vyas from ET NOW.
Congratulations, sir. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
Right, right. [Foreign Language]
[Foreign Language]
[Foreign Language]
Right. [Foreign Language]
[Foreign Language]
Okay. [Foreign Language]
[Foreign Language]
Right, sir. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language] Sir, last question. [Foreign Language]
[Foreign Language]
December quarter?
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language] That's all from my side.
The next question is from the line of Kush Tandon from Ananta Capital.
[Foreign Language]
[Foreign Language]
Okay. [Foreign Language]
[Foreign Language]
Okay, sir. And our margin guidance, sir, 12% on the lower side given that we can do INR 550 crores, INR 600 crore quarterly revenue. So sir, you are being conservative just like that, or [Foreign Language].
[Foreign Language]
Okay. [Foreign Language]
[Foreign Language]
The next question is from the line of [ Ankur Kumar ] from Alpha Capital.
Congrats on a very good set of numbers. [Foreign Language]
[Foreign Language]
[Foreign Language]
Right. [Foreign Language]
Got it, sir. [Foreign Language] Next year will be like 25% growth over this number?
Right.
Got it, sir. [Foreign Language] Can you comment on that?
[Foreign Language]
Got it, sir. [Foreign Language] Good number, sir.
Good number. Good number, yes.
The next question is from the line of Gauri from Old Bridge Capital Management.
Yes. And sir, congratulations -- many congratulations to you for this excellent performance. [Foreign Language] order execution capacity is [ INR 2,400 ] enabling resolution for that INR 200 crore QIP, which is when you talk about execution, [Foreign Language] this year, INR 1,250 crores revenue, [Foreign Language] let's say, about anywhere between INR 1,600 crores to INR 1,700 crores [Foreign Language]. What I'm asking is that you gave us a guidance on the order book. But actually, the execution is annual, right? So you still have that much capacity and you don't have to necessarily expand. Can you help me understand this?
Yes, yes, yes. I understand. Madam Gauri, madam, I understand very good. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language] Like what is the sense on working capital, sir? [Foreign Language] you will be able to get money in time? Or what is -- how is the contract really structured?
[Foreign Language]
[Foreign Language] 90% of the payment [Foreign Language] profit component [ mandate is ] 10% [Foreign Language].
[Foreign Language]
Okay. Any other [Foreign Language] mandate [Foreign Language].
[Foreign Language]
Okay. Okay, sir. And you don't expect a slippage here? I mean, whatever is the 120 days kind of a cycle, you don't expect this to elongate. Is that right? [Foreign Language]
[Foreign Language]
The next question is from the line of Yashi Lohia from The MicroCap Minute.
Congratulations, sir. [Foreign Language]
[Foreign Language]
Right, sir. [Foreign Language]
[Foreign Language]
Right, sir. [Foreign Language]
[Foreign Language]
Okay. [Foreign Language]
[Foreign Language]
All right, sir. [Foreign Language]
[Foreign Language]
The next question is from the line of [ Vivek Gautam ] from [ GS Investment ].
To be honest, I have recently started tracking the company, so not much idea. But sir, the concerns on the sales to Africa regarding the receivables are there for other companies. So how are we planning to tackle that in the Africa and other nations? Is it a World Bank-funded project so that we get payment through LC? And similar queries on the government business, B2G business in India, it's also having some concerns on the receivables. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
The next question is from the line of Rikesh Parikh from Rockstud Capital LLP. [indiscernible] Hello, Mr. Rikesh Parikh?
Yes. Congratulations for a good set of numbers. Sir, I just wanted to understand your progress on the EV side wins, any further progress on the order inflow and the investment we are going to do over the next [ 1 ] years?
[Foreign Language]
[Foreign Language]
[Foreign Language]
The next question is from the line of [ Rajasekar MS ], an individual investor.
Congrats on a good set of numbers. I've been following your company for a quite long time. [Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language] That's what I would put it across, correct?
Correct, correct, correct. [Foreign Language]
Due to time constraint, that was the last question for today. I would now like to hand the conference over to Mr. Dinesh Patidar for closing comments. Over to you, sir.
[Foreign Language] Thank you. Thank you.
Thank you. On behalf of Shakti Pumps (India) Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Read the full transcript via the API
You're viewing the first half of this call. Get the complete Shakti Pumps (India) Limited transcript - plus 252,000+ transcripts from 12,000+ companies, speaker segments and full-text search - through the EarningsAPI REST API or hosted MCP server.
Get an API key View API docs →For developers and AI pipelines
Programmatic access to Shakti Pumps (India) Limited earnings transcripts and 252,000+ others is available through the
EarningsAPI REST API and the hosted MCP server.
Quarterly plans from $105 - full transcripts, speaker segments, full-text search,
and the /api/v1/transcripts/recent polling endpoint for ETL pipelines.