Shakti Pumps (india) Limited · NSE:SHAKTIPUMP

Shakti Pumps (india) — Q3 FY2023 Earnings Presentation

39 slides from Shakti Pumps (india)'s earnings presentation, Jan 20, 2023

Slide 1: Cover letter to stock exchanges under Regulation 30
Date: ‐ 20/01/2023 To, To, The Secretary, The Secretary, Listing Department Listing Department National Stock Exchange of India Ltd. BSE Ltd. Exchange plaza, BKC, Bandra (E) P. J. Towers, Dalal Street Mumbai ‐ MH 400051. Mumbai‐ MH 400001. REF: ‐(ISIN‐ INE908D01010) SCRIP CODE BSE‐531431, NSE Symbol
Slide 2: Investor Presentation January 2023
Investor Presentation January 2023 Shakti Pumps (India) Limited www.shaktipumps.com BSE: 531431 | NSE: SHAKTIPUM P |ISIN: INE908D01010 20-01-2023 © 2023, All Rights Reserved - www.shaktipumps.com 1
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 6: Management Commentary on Performance
Management Commentary on Performance "The company performance during Q3FY23 was decent with revenue registering a growth of 17.0% YoY to Rs 3,142 million as compared to Rs 2,686 million in Q3FY22 supported by strong growth in Solar EPC and export business. Overall, we reported a revenue of Rs 7,850
Slide 7: Q3 FY23 Consolidated Income Statement
Q3 FY23 Consolidated Income Statement Particulars (Rs Mn) Q3FY23 Q3FY22 YoY Q2FY23 QoQ 9MFY23 9MFY22 YoY Revenue from Operations 3,142 2,686 17.0% 2,163 45.3% 7,850 7,940 (1.1%) EBITDA 219 273 (19.8%) 124 75.9% 557 742 (25.0%) EBITDA Margins % 7.0% 10.2% (320 bps) 5.8% 121 bps 7.1% 9.3% (225 bps) Fi
Slide 8: Quarterly Comparative Charts
Quarterly Comparative Charts Revenue (Rs Mn) EBITDA and EBITDA Margin (%) 7,940 7,850 800 9.3% 12.0% 10.2% 700 10.0% 600 7.1% 7.0% 8.0% 500 400 6.0% 3,142 742 2,686 300 557 4.0% 200 273 219 2.0% 100 0 0.0% Q3FY22 Q3FY23 9MFY22 9MFY23 Q3FY22 Q3FY23 9MFY22 9MFY23 PAT and PAT Margin (%) EPS (Rs) 500 5.
Slide 9: Consolidated Income Statement
Consolidated Income Statement Particulars (Rs Mn) FY19 FY20 FY21 FY22 9MFY23 Revenue from Operations 5,464 3,828 9,297 11,785 7,850 EBITDA 884 114 1,413 1,105 557 EBITDA Margins % 16.2% 3.0% 15.2% 9.4% 7.1% Depreciation and Amortization Expense 150 172 184 186 139 Finance Cost 178 208 162 157 151 PB
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Mn) FY19 FY20 FY21 FY22 H1FY23 Assets Net Fixed Assets 1,522 1,539 1,481 1,463 1,452 Other Non Current Assets 196 170 214 48 49 Current Assets 4,116 3,698 5,009 7,126 6,597 Total Assets 5,834 5,406 6,705 8,637 8,099 Liabilities Net Worth 2,904 2,652 3,406 3
Slide 11: Key financial highlights – Showing strong numbers with overall improvement
Key financial highlights – Showing strong numbers with overall improvement Revenue driven by improved demand of Solar pumps (Rs Mn) RMC is the major contributor of overall expenses 11,785 9,297 14.1% 9.7% 4.7% 17.7% 9.4% 14.7% 5,464 3,828 1,105 1,413 65.0% 70.6% 884 451 756 648 59.3% 114 -141 FY 201
Slide 12: Key financial highlights – Other major ratios
Key financial highlights – Other major ratios Optimum capital structure with high coverage ratio (x) Improving working capital cycle 8.8 212 7.0 153 5.0 121 119 4.5 104 110 3.9 91 100 3.5 81 90 75 74 0.5 0.6 0.6 0.8 0.2 0.2 FY2019 FY2020 FY2021 FY2022 FY2019 FY2020 FY2021 FY2022 Gearing Interest Cov
Slide 14: Company at glance
Company at glance ▪ Incorporated in 1982 and led by Mr. Dinesh ▪ Products have varied applications from Patidar, Shakti Pumps (India) Limited (SPIL) agricultural, building services, power, oil & gas, has made strong presence in the pumps metals & mining and others industry ▪ Diversified customer mix
Slide 15: Have been in the pumps business since last 3 decades
Have been in the pumps business since last 3 decades Received first Implementation of patent Listed on the Received R & D PM-KUSUM scheme Corporate Excellence Bombay stock Recognition from Govt. of Received IMC Set up a separate SEZ Award at National exchange RBNQ Started the SSI Unit, expansion of
Slide 16: 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 compare to cast
Slide 17: Varied range of applications - Provide less dependency on any one sector
Varied range of applications - Provide less dependency on any one sector Solar Domestic Channel partner with MNRE For domestic needs of bungalows, with top notch 1A ratings, pumps high-rise buildings, housing ranging from 0.5 HP to 300 HP that complexes and apartment. ideally are simple to operate w
Slide 18: Diversified customer mix – Reduces the customer concentration risk
Diversified customer mix – Reduces the customer concentration risk FY2018 FY2019 FY2020 FY2021 FY2022 Focussed area for SPIL ▪ Government Projects 70% ▪ Export Customers ▪ Other customers including 58% B2C business 41% 37% 32% 33% 30% 25% 20% 18% 19% 18% 16% 12% 12% 11% 10% 9% 9% 4% 4% 5% 3% 2% 1% C
Slide 19: State-of-art manufacturing facilities – with strong backend support
State-of-art manufacturing facilities – with strong backend support 1 World class manufacturing unit 2 Additional facilitates 3 Certifications & Approvals Backward Integrated - In-house UL Certificate Unit I – Main unit: (Total Area-16 acres) manufacturing all the key components required for pumps a
Slide 21: Experienced management team with robust corporate governance standards
Experienced management team with robust corporate governance standards Mr. Dinesh Patidar Managing Director Mr. Sunil Patidar A visionary, self-made industrialist and leader with a strong business acumen and knowledge in development of engineering Director products and management. More than 3 decade
Slide 22: Experienced management team with robust corporate governance standards
Experienced management team with robust corporate governance standards Dr Chinmay Jain Mr. Ravi Patidar DGM - Electronics and Control Company Secretary An M. E. in electrical engineering from Indian Institute of Science, A Commerce graduate, and also hold the degree of L.L.B. He is Bangalore, he has
Slide 23: Corporate Structure – Providing global presence
Corporate Structure – Providing global presence SPIL Shakti Pumps India Limited Domestic Foreign Shakti Energy Solutions P Ltd Shakti Pumps 100% WOS based out of USA & Shakti Green Industries P Ltd USA, LLC Revenue: ₹ 337 mn, PAT: ₹ 41 mn in FY2022 Shakti Energy - 100% WOS has 1,00,000 solar structu
Slide 25: Why solar pumping systems are need of hour?
Why solar pumping systems are need of hour? Working of a Existing Grid System Pump ▪ A solar-powered pump is a pump PM supporting Solar power running on solar energy to push farmer income generated by photovoltaic panels or the radiated thermal energy PM speech on Solar pump available from collected
Slide 26: Government initiatives to support solar power generation
Government initiatives to support solar power generation To promote the Target to setup 280 GW solar power capacity by 2030 green energy agenda (from 49.34 GW as on 31 Dec 2021) Off Grid Launched Grid Connected Various Schemes ▪ Setting up of Solar Parks and Ultra Mega Solar ▪ Pradhan Mantri - Kisan
Slide 27: Kusum - A initiative to transform agriculture sector
Kusum - A initiative to transform agriculture sector In FY 2018-19, a ₹480 bn budget was setup for 10 years period Subsidy scheme to install new solar pumps and replace the existing electrical/diesel pumps to reduce the dependency of grid power Component Addition of 10,000 MW solar power capacity wi
Slide 28: Kusum – Benefitting farmers to the core
Kusum – Benefitting farmers to the core and slowing the 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% -
Slide 29: Kusum - Benefitting Government to move away from fossil to renewable sources
Kusum - Benefitting Government to move away from fossil to renewable sources India Potential – Renewable Energy (RE) ~ 1,100 GW 750 Solar Extremely slow execution Targets to reach 500 GW RE capacities by 2030 of rate so far, just added ~53 which Solar is expected to GW capacities during Apr 300 have
Slide 30: Huge Addressable market for SPIL providing immense opportunities
Huge Addressable market for SPIL providing immense opportunities Large Headroom for ▪ Global solar industry was valued at Solar Pumps in India – Market Size USD 50 bn in 2019 and is estimated Growth - Water Pump Market to grow by 26% to reach USD 200 bn Particulars KUSUM 1 KUSUM 2 FY24E FY25E by 202
Slide 31: Emphasizing on technological improvement to further drive future growth
Emphasizing on technological improvement to further drive future growth Regular addition of new products Awarded 2 patent of 29 allied patents ▪ On the back of advanced R&D team and infrastructure, ▪ Providing innovative solutions through its advanced R&D support SPIL filled for 29 patents ▪ Some of
Slide 32: Presence across continents – Leading to revenue & margin expansion
Presence across continents – Leading to revenue & margin expansion Global Presence (100+ countries) Opportunities ▪ Segment reported a CAGR of 11.5% during 2018-21 expecting to Europe 26 countries perform better on the back of new orders which may translate into better overall margins as the segment
Slide 33: Retail demand – Well supported by strong distribution network and new product launch
Retail demand – Well supported by strong distribution network and new product launch High market penetration ▪ Sells all its products under with strong distribution network “Shakti” Brand ▪ One of the selected bidders among 5-7 L1 bidders for supplying pumps with 1-10 HP 500+ 1200+ Nos of Dealers ▪
Slide 34: Strong backend support to improve customer connect
Strong backend support to improve customer connect ▪ Availability of many field people who control any issues related to the pumps ▪ Technological advanced company’s pumps can be remotely monitored through “Shakti Remote Monitoring System – Mobile App” with controls built inside the pumps ▪ Controll
Slide 35: Revenue grew by 1.3x in FY2022 compared to FY2021
Revenue grew by 1.3x in FY2022 compared to FY2021 11,785 Fig. in Rs million 9,297 5,464 4,366 3,828 FY2018 FY2019 FY2020 FY2021 FY2022 Revenue is expected to report a strong growth underpinned by strong government initiatives, strong product portfolio and in-house R&D infrastructure to launch new an
Slide 37: 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: 60% STEP1: State Government 100% Farmer submits interest for Solar equipment and contributes 10% to State Nodal Agency Work Order STEP2:
Slide 38: 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 39: Thank You
Shakti Pumps (India) Limited Regd. Office & Works: Plot No. 4O1-,402 & 413, industrial Area, Sector - 3, Pithampur - 454774, Dist. Dhar (M.P.) India. Mr. Dinesh Patel, CFO ✉ dinesh.patel@shaktipumps.com Ernst & Young, LLP Vikash Verma ✉ vikash.verma1@in.ey.com Rohit Anand ✉ rohit.anand4@in.ey.com Th

Shakti Pumps (India) — Q3 FY2023 Earnings Presentation on 6ix

Shakti Pumps (india) — Q3 FY2023 Earnings Presentation

Slide 1: Cover letter to stock exchanges under Regulation 30

Slide 2: Investor Presentation January 2023

Slide 3: Disclaimer

Slide 4: Contents

Slide 5: Financial Highlights

Slide 6: Management Commentary on Performance

Slide 7: Q3 FY23 Consolidated Income Statement

Slide 8: Quarterly Comparative Charts

Slide 9: Consolidated Income Statement

Slide 10: Consolidated Balance Sheet

Slide 11: Key financial highlights – Showing strong numbers with overall improvement

Slide 12: Key financial highlights – Other major ratios

Slide 13: Business Overview – Pumping Growth

Slide 14: Company at glance

Slide 15: Have been in the pumps business since last 3 decades

Slide 16: Diversified product range - Inhouse manufacturing of energy efficient products

Slide 17: Varied range of applications - Provide less dependency on any one sector

Slide 18: Diversified customer mix – Reduces the customer concentration risk

Slide 19: State-of-art manufacturing facilities – with strong backend support

Slide 20: High Tech Manufacturing Facilities - Defining global standards

Slide 21: Experienced management team with robust corporate governance standards

Slide 22: Experienced management team with robust corporate governance standards

Slide 23: Corporate Structure – Providing global presence

Slide 24: Key Drivers

Slide 25: Why solar pumping systems are need of hour?

Slide 26: Government initiatives to support solar power generation

Slide 27: Kusum - A initiative to transform agriculture sector

Slide 28: Kusum – Benefitting farmers to the core

Slide 29: Kusum - Benefitting Government to move away from fossil to renewable sources

Slide 30: Huge Addressable market for SPIL providing immense opportunities

Slide 31: Emphasizing on technological improvement to further drive future growth

Slide 32: Presence across continents – Leading to revenue & margin expansion

Slide 33: Retail demand – Well supported by strong distribution network and new product launch

Slide 34: Strong backend support to improve customer connect

Slide 35: Revenue grew by 1.3x in FY2022 compared to FY2021

Slide 36: Annexure

Slide 37: Project Execution Process (PM KUSUM Scheme)

Slide 38: ESG Initiatives for Sustainable Growth of Business

Slide 39: Thank You