Shakti Pumps (india) Limited · NSE:SHAKTIPUMP
Shakti Pumps (india) — Q1 FY25 Earnings Presentation
39 slides from Shakti Pumps (india)'s earnings presentation, Jul 20, 2024
Slide 1: Cover letter to stock exchanges
Date : - 20/07/2024 To, To, The Secretary, The Secretary, Listing Department Corporate Relationship Department National Stock Exchange of India Ltd. BSE Limited Exchange plaza, BKC, Bandra (E) P. J. Towers, Dalal Street Mumbai - MH 400051. Mumbai- MH 400001. REF: -(ISIN- INE908D01010) SCRIP CODE BSE
Slide 2: Shakti Pumps (India) Limited Investor Presentation Q1FY25
Shakti Pumps (India) Limited Investor Presentation Q1FY25 BSE: 531431 | NSE: SHAKTIPUMP | ISIN: INE908D0101 © 2024, All Rights Reserved - www.shaktipumps.com
Slide 3: Disclaimer
Disclaimer This presentation and the following discussion may contain “forward looking statements” by Shakti Pumps (India) Limited (“SPIL” or the company) that are not historical in nature. These forward-looking statements, which may include statements relating to future results of operations, finan
Slide 4: Table of Contents
Table of Contents Financial Highlights Business Overview Segment Highlights Industry Overview Annexures © 2024, All Rights Reserved - www.shaktipumps.com 3
Slide 5: Financial Highlights
Financial Highlights © 2024, All Rights Reserved - www.shaktipumps.com 4
Slide 6: Management Commentary on Performance
Management Commentary on Performance “We are pleased to report an outstanding start to the Financial Year 2025, with the first quarter demonstrating robust revenue growth and enhanced profitability. This commendable performance is attributable to the accelerated execution of the existing orders in b
Slide 7: Strong Order Book
Strong Order Book ORDER BOOK AS ON 30th June 2024 Order Value* (Rs. Crores) COMPONENT B - Off-Grid Solar Photovoltaic Water Pumping Systems Maharashtra State Electricity Distribution Company Limited (MSEDCL) & 1,432 Maharashtra Energy Department Agency (MEDA) Haryana Renewable Energy Department (HAR
Slide 8: Q1FY25 Consolidated Income Statement
Q1FY25 Consolidated Income Statement Particulars (Rs Mn) Q1FY25 Q1FY24 YoY Q4FY24 QoQ FY24 FY23 YoY Revenue from Operations 5,676 1,131 402.0% 6,093 (6.8%) 13,707 9,677 41.7% EBITDA 1,359 79 1614.0% 1,307 3.9% 2,248 666 237.8% EBITDA Margins % 23.9% 7.0% 1,693 bps 21.5% 248 bps 16.4% 6.9% 952 bps Fi
Slide 9: Key Financials Charts
Key Financials Charts Revenue (Rs Mn) EBITDA (Rs Mn) and EBITDA Margin (%) 13,707 2,500 30.0% 16.4% 23.9% 2,000 25.0% 9,677 20.0% 1,500 5,676 15.0% 1,000 2,248 7.0% 6.9% 10.0% 1,359 1,131 500 5.0% 666 79 - 0.0% Q1FY24 Q1FY25 FY23 FY24 Q1FY24 Q1FY25 FY23 FY24 PAT (Rs Mn) and PAT Margin (%) EPS (Rs) 1
Slide 10: Consolidated Income Statement
Consolidated Income Statement Particulars (Rs Mn) FY20 FY21 FY22 FY23 FY24 Revenue from Operations 3,828 9,297 11,785 9,677 13,707 EBITDA 114 1,413 1,105 666 2,248 EBITDA Margins % 3.0% 15.2% 9.4% 6.9% 16.4% Depreciation and Amortization Expense 172 184 186 184 190 Finance Cost 208 162 157 192 195 P
Slide 11: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Mn) Mar’ 20 Mar’ 21 Mar’ 22 Mar’ 23 Mar’ 24 Assets Net Fixed Assets 1,539 1,481 1,463 1,481 1,878 Other Non-Current Assets 170 214 48 152 175 Current Assets 3,698 5,009 7,126 5,620 12,450 Total Assets 5,406 6,705 8,637 7,253 14,503 Liabilities Net Worth 2,6
Slide 12: Key Financial Highlights
Key Financial Highlights Revenue driven by improved demand of Solar pumps (Rs Mn) Break-up of Operating Costs as a % of Revenue 13,707 11,785 9,297 9,677 14.1% 4.4% 5.5% 4.7% 9.4% 10.8% 4.8% 17.7% 9.4% 11.7% 3,828 666 1,105 2,248 1,413756 648 1,417 114 241 70.6% 76.8% 76.8% 65.0% 67.1% -141 FY20 FY2
Slide 13: Key Financial Highlights – Key Ratios
Key Financial Highlights – Key Ratios Optimum capital structure with high coverage ratio (x) Improving working capital cycle 11.5 212 178 172 8.8 9.3 7.1 119 119 118 115 104 102 91 87 92 4.5 75 74 3.9 3.5 62 3.2 0.6 0.6 0.8 0.2 0.2 0.2 0.1 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Gearing In
Slide 14: Business Overview
Business Overview © 2024, All Rights Reserved - www.shaktipumps.com 13
Slide 15: Shakti Pumps at a Glance
Shakti Pumps at a Glance Business Overview ₹ 1,371 Crores + 41.7% FY24 Revenue Revenue YoY A leading integrated player manufacturing fabrication technology-based solar/electricity operating submersible pumps in India, catering to customers across the globe. With over four decades of ₹ 225 Crores 16.
Slide 16: Key Strengths
Key Strengths Expansive Product Portfolio 4+ decades of presence Manufacturing 5-star rated high-quality products with 1,500+ variants Diversified Business Model and Applications Global Presence in 100+ Countries Integrated Manufacturing Facilities Strong Management Team 3 facilities located in Pith
Slide 17: Been in the Pumps Business since last 4 Decades
Been in the Pumps Business since last 4 Decades Commenced Received first operations in Implementation of patent Listed on the Uganda to Successfully PM-KUSUM scheme Received IMC Supply Solar Bombay stock Corporate Excellence completed QIP Set up a separate SEZ Received R & D RBNQ Powered Water Start
Slide 18: Diversified Customer Mix
Diversified Customer Mix FY20 FY21 FY22 FY23 FY24 69% 67% 69% 58% 32% 33% 35% 24% 21% 22% 19% 16% 15% 9% 10% Customers under Govt. Projects Export Customers Other Customers SPIL supplies solar pumps to farmers through SPIL supplies water pumping systems along SPIL also supplies its pumps, motors & v
Slide 19: Varied Range of Applications
Varied Range of Applications - Provide less dependency on any one sector Solar Domestic For domestic needs of Channel partner with MNRE bungalows, high-rise buildings, with top notch 1A ratings, pumps housing complexes and apartment. ranging from 0.5 HP to 300 HP that Ideally used for tasks such as
Slide 20: State-of-art Manufacturing Facilities
State-of-art Manufacturing Facilities – with strong technical capability 1 World class manufacturing unit 2 Additional facilitates 3 Certifications & Approvals Unit I – Main unit: (Total Area-16 acres) Backward Integrated - In-house Main Unit (I) manufacturing all the key ▪ 4”, 6”, 8” & 10” Motor Ma
Slide 21: High Tech Manufacturing Facilities
High Tech Manufacturing Facilities - Defining global standards © 2024, All Rights Reserved - www.shaktipumps.com 20
Slide 22: Diversified Product Range - Inhouse manufacturing of energy efficient products
Diversified Product Range - Inhouse manufacturing of energy efficient products Shakti’s Range of Product Key Differentiators High quality energy efficient stainless steel Pumps 30-40% less energy consumption ~40% more output compared to cast iron pumps Rust & corrosion free ~ 2X life compared to cas
Slide 23: Experienced Management Team
Experienced Management Team Mr. Dinesh Patidar Mr. Ramesh Patidar Chairman Managing Director A visionary, self-made industrialist and leader with a strong business A Graduate in Business Administration with having more than 18 acumen and knowledge in development of engineering products and years of
Slide 24: Independent Directors
Independent Directors Mr. . Hirabhai Somabhai Patel Mr. Bhim Singh Independent Director Independent Director A retired IAS officer and has held various reputable positions in A SERB National Science Chair & Emeritus Professor, different departments. Notably, he has been the Secretary of Department o
Slide 25: Segment Highlights
Segment Highlights © 2024, All Rights Reserved - www.shaktipumps.com 24
Slide 26: Government Projects providing Stimulus to our Growth
Government Projects providing Stimulus to our Growth • Under Government Projects, SPIL provides submersible stainless steel pumps and energy efficient motors to the farmers • Includes implementation and back-end support to farmers, helping them with improved efficiency and crop productivity Revenue
Slide 27: Global Presence leading to Revenue & Margin expansion
Global Presence leading to Revenue & Margin expansion Global Presence (100+ countries) Revenue from Exports (Rs. Crores) 22.3% CAGR Europe 26 countries North America Middle East Asia 4 Countries 26 countries 15 Countries 286 235 Oceania 180 185 Africa 29 countries 3 Countries 128 FY20 FY21 FY22 FY23
Slide 28: Other Businesses - Industrial, OEM, Retail & Others
Other Businesses - Industrial, OEM, Retail & Others Revenue from Other Businesses (Rs. Crores) Other Businesses include Industrial Customers OEM Customers Our products are used in Under this, the company sells its industries for variety of purposes products to solar OEM players such as fire-fighting
Slide 29: Targeting New Opportunities - Electric Vehicles Segment
Targeting New Opportunities - Electric Vehicles Segment ▪ With a view towards incorporating Climate Change in its purview, Shakti EV Mobility was incorporated as a wholly-owned subsidiary by SPIL in December 2021 ▪ The subsidiary is engaged in the manufacturing and sale of EV motors, charging statio
Slide 30: Industry Overview
Industry Overview © 2024, All Rights Reserved - www.shaktipumps.com 29
Slide 31: Pumps Industry Market Size & Opportunity
Pumps Industry Market Size & Opportunity in Rs. Billion Overall Pumps Market Size Submersible Pumps Market Size Solar Pumps Market Size 10.9% 10,071 Global Industry 12.5% 6.9% 5,987 3,021 8.5% 16.3% 4,270 12.1% 806 1,672 1,110 379 214 CY18 CY23 CY28 CY18 CY23 CY28 CY18 CY23 CY28 13.9% 365 Indian Ind
Slide 32: PM KUSUM - An initiative to transform the Agriculture sector
PM KUSUM - An initiative to transform the Agriculture sector In FY 2018-19, a ₹480 bn budget was setup for a 10-year period Subsidy scheme to install new solar pumps and replace the existing electrical/diesel pumps to reduce the dependency of grid power Solar Pumps – Market Size Component Addition o
Slide 33: PM KUSUM – Benefitting farmers to the core
PM KUSUM – Benefitting farmers to the core and slowing base issues in the sector State State Nodal Agency Project Farmer Share State Share MNRE Share Total Rajasthan RHDS - Jaipur PM-KUSUM 40% 30% 30% 100% Haryana HAREDA - Panchkula PM-KUSUM 25% 45% 30% 100% Punjab PEDA - Chandigarh PM-KUSUM 15% - S
Slide 34: Annexures
Annexures © 2024, All Rights Reserved - www.shaktipumps.com 33
Slide 35: Corporate Structure – Providing Global Presence
Corporate Structure – Providing Global Presence SPIL Shakti Pumps India Limited Domestic Foreign Shakti Pumps 100% WOS based out of USA Shakti Energy Solutions P Ltd USA, LLC Revenue: ₹ 484.7 mn, PAT: ₹ 67.9 mn in FY2024 Shakti Energy - 100% WOS has 1,00,000 solar structures annual capacity located
Slide 36: Stock Price Movement & Information
Stock Price Movement & Information 52-Week Stock Price Movement Key Domestic Institutional Investors LIC Mutual Fund SBI Mutual Fund Post completion of QIP Issue on 22nd March 2024 Stock Information as on 30th June 2024 BSE Ticker 531431 NSE Symbol SHAKTIPUMP Capital Goods Industry (Solar Pumps) Mar
Slide 37: ESG Initiatives for Sustainable Growth of Business
ESG Initiatives for Sustainable Growth of Business Environment Empathy Social Responsibility Corporate Governance ▪ The Company has diversified into solar ▪ Installation of solar pumps and systems ▪ The Company is committed to sound energy operated pumps and rooftop across multiple villages in India
Slide 38: Project Execution Process (PM KUSUM Scheme)
Project Execution Process (PM KUSUM Scheme ) General Mechanism Respective Nodal Agency of each state looks after the activities for New & Renewable Energy sector: STEP1: Farmer submits interest for Solar equipment 60% and contributes 10% to State Nodal Agency State Government 100% STEP2: MNRE contri
Slide 39: Thank You
Thank You Shakti Pumps (India) Limited Ernst & Young LLP Dinesh Patel, Chief Financial Officer Vikash Verma / Rohit Anand / Riddhant Kapur dinesh.patel@shaktipumps.com vikash.verma1@in.ey.com /rohit.anand4@in.ey.com / riddhant.kapur@in.ey.com © 2024, All Rights Reserved - www.shaktipumps.com 38