Shakti Pumps (India) Limited (531431) Earnings Call Transcript
July 22, 2024
Earnings Call Speaker Segments
Ladies and gentlemen, good day, and welcome to the Shakti Pumps India Limited Q1 FY '25 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, Mr. Rohit Anand.
Good afternoon, everyone. Before we proceed, let me remind you that this 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 risk that could 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 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, Company Secretary and Compliance Officer. We will start the call with a brief overview of the past quarter by Mr. Patidar followed by an interactive Q&A session. I will now hand over the call to Mr. Patidar. Over to you, sir.
[Foreign Language]
Thank you, sir. Good afternoon, everyone. During the Q1 FY '25, our revenue was at INR 567.6 crores, which increased from INR 113.1 crore in the same quarter last year, reporting a growth of 4x. Our EBITDA stood at INR 135.9 crore as against INR 7.9 crore in Q1 FY '24. EBITDA margins were at 23.9% in this quarter, as against 7% in Q1 FY '24. The expansion in margin was largely driven by economics of scale and higher execution of orders along with some benefit accrued due to declined raw material prices. Profit after tax stood at INR 92.6 crore compared to INR 1 crore in Q1 FY '24. Rate margin stood at 16.3% as compared to 0.9% in the corresponding quarter of the previous fiscal. The company's long-term credit rating has been upgraded to A+ stable from India Ratings and Research. With our strong balance sheet and the key metrics, we are confident in the timely completion of order book and consolidate our position in the market. With this, I now request the moderator to open the floor for question and answer. Thank you.
[Operator Instructions] The first question is from the line of Deepak Purswani from Swan Investments.
Congratulations on very good set of numbers. Sir, firstly, [Foreign Language]
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Okay. Sir, [Foreign Language] there are some new players who are also entering in this space. [Foreign Language]
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Okay. And secondly, sir, on the margin front [Foreign Language]
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[Operator Instructions]
Yes. I'm just continuing the existing question.
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The next question is from Aashish Upganlawar from InvesQ.
Sir, on the Ajmer pilot project, any updates on that? And [Foreign Language] how things are looking and [Foreign Language] if it goes through, in the next maybe 1 or 2 years? How things look?
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[Foreign Language] As of now, whatever you know.
Same time. [Foreign Language]
Okay. Okay. [Foreign Language]
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[Operator Instructions] So the next question is from Harshil Solanki from Equitree Capital.
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Right. Right.
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Got it. Got it. [Foreign Language]
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Okay. Okay. [Foreign Language]
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Yes, yes.
[Operator Instructions]
Yes, right after this answer, I'll get back.
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So, sir the next question is from -- the next question is from Avi Agarwal from Arihant Capital Markets Limited.
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The next question is from [ Parth Mehta ] [indiscernible]. Sorry, the next question is from [indiscernible].
[Foreign Language]
Thank you, Rajesh-ji. Thank You.
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[Foreign Language] central government, everything is clear.
[Foreign Language] Everything is very clear. [Foreign Language]
[Foreign Language] situation of all stakeholders.
Right, sir. Everybody should...
Very good. [Foreign Language] CFO can share the number or you have the number. [Foreign Language]
[Foreign Language] around 70,000, 80,000-something.
70,000, 80,000. [Foreign Language]
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[Foreign Language] percentage of revenue would be how much?
[Operator Instructions]
78%.
78%. Okay. Congratulations and all the best.
The next question is from Tushar Jain from Sumitomo Mitsui DS Asset Management.
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[Foreign Language] major raw material [Foreign Language]
Major raw material, solar panel, stainless steel, copper [Foreign Language]. Stainless steel, copper, solar panel.
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The next question is from Ajay Kumar Surya from Niveshaay.
Sir, congratulation on this fantastic number. [Foreign Language]
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[Foreign Language] So going forward, sir, [Foreign Language]
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Sir. And sir, [Foreign Language]
[Operator Instructions] The next question is from Swati Jhunjhunwala from JM Financial.
[Foreign Language] submersible pumps versus solar pumps [Foreign Language]
Okay. [Foreign Language]
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The next question is from Bharat Shah from Ask Investment Managers Limited. [Operator Instructions] The next question is from [indiscernible].
[Foreign Language] Slide #30 or 31. Slide #30 [Foreign Language].
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Sir, [Foreign Language] market size [Foreign Language] 1,470 billion.
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Sir, is the [Foreign Language] replacement cycle [Foreign Language].
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Okay. Sir, last question, [Foreign Language] EBITDA margin [Foreign Language] somewhere around [Foreign Language]
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The next question is from Bharat Shah from ASK Investment Managers Limited.
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[Foreign Language] 15% to 16% of margin [Foreign Language] 30% the growth to minimum [Foreign Language] EBITDA margin level [Foreign Language] 15% to 16% growth level [Foreign Language].
30% [Foreign Language].
Year-on-year basis [Foreign Language] Quarter-on-quarter basis [Foreign Language] quarter-on-quarter basis [Foreign Language] INR 500 crores.
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[Foreign Language] margin structurally [Foreign Language]
Mostly the external factor [Foreign Language] raw material, the prices [Foreign Language] 65% raw material [Foreign Language]
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[Foreign Language] especially power electronics or motor [Foreign Language]
The next question is from Darshil Pandya from Finterest Capital.
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'27 [Foreign Language]
'27. Okay. And [Foreign Language]
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Sir, [Foreign Language]
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[Foreign Language] Question, sir. [Foreign Language]
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Okay. Okay. And, sir...
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Got it. Got it. And sir, [Foreign Language]
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And congratulations and all the best for the coming quarters.
The next question is from Ketan Athavale from RoboCapital.
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[Foreign Language] around 15,000 pumps, revenue around INR 445 crore.
Okay. [Foreign Language] Rough figure.
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The next question is from CA Garvit Goyal from Invest Analytics Advisory, LLP.
Am I Audible?
[indiscernible].
Congrats for a good set of numbers, sir. Just one question on the sustainability of the growth. [Foreign Language]. And secondly, sir, [Foreign Language]
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So sir, total CapEx [Foreign Language]
INR 250 crore [Foreign Language] INR 200 crore support [Foreign Language]
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And, sir, [Foreign Language]
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And just last question, sir, quarter [Foreign Language]
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[Foreign Language] for the next 15 months.
Ladies and gentlemen, due to time constraints, we will take that as a last question. I would now like to hand the conference over to Mr. Dinesh Patidar for closing comments.
[Foreign Language] Thank you very much.
On behalf of that, concludes Shakti Pumps India Limited, this conference. Thank you for joining us, and you now disconnect your lines.
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