Shakti Pumps (india) Limited · NSE:SHAKTIPUMP
Shakti Pumps (india) — Q4 FY24 Earnings Presentation
43 slides from Shakti Pumps (india)'s earnings presentation, Apr 27, 2024
Slide 1: Cover letter to stock exchanges
Date: ‐ 27/04/2024 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 April 2024
Shakti Pumps (India) Limited BSE: 531431 NSE: SHAKTIPUMP © 2024, All Rights Reserved - www.shaktipumps.com Investor Presentation | April 2024 ISIN: INE908D0101
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: Financial Highlights
1 Financial Highlights Business Overview Segment Information Government Projects Exports and Other Segments Investment Rationale Annexures © 2024, All Rights Reserved - www.shaktipumps.com
Slide 5: Recent Developments – Q4FY24
Recent Developments – Q4FY24 ORDERS COMPONENT B – Off-Grid Solar Photovoltaic Water Pumping Systems # of Pumps Order Value* Execution Timeline ^ 24 Feb 2024 Haryana Renewable Energy Department (HAREDA) 2,443 Rs. 84.30 Crores 90 days 13 Mar 2024 Haryana Renewable Energy Department (HAREDA) 2,130 Rs.
Slide 6: Q4 & FY24 Consolidated Income Statement
Q4 & FY24 Consolidated Income Statement Particulars (Rs Mn) Q4FY24 Q4FY23 YoY Q3FY24 QoQ FY24 FY23 YoY Revenue from Operations 6,093 1,827 233.6% 4,956 22.9% 13,707 9,677 41.7% EBITDA 1,307 109 1100.4% 710 84.2% 2,248 666 237.8% EBITDA Margins % 21.5%* 6.0% 1,550 bps 14.3% 714 bps 16.4% 6.9% 952 bps
Slide 7: Key Financials Charts
Key Financials Charts Revenue (Rs Mn) EBITDA (Rs Mn) and EBITDA Margin (%) 2500 16.4% 25.0% 13,707 21.5% 2000 20.0% 9,677 1500 15.0% 6,093 6.9% 2248 1000 10.0% 6.0% 1,827 1307 500 5.0% 666 109 0 0.0% Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q4FY24 FY23 FY24 PAT (Rs Mn) and PAT Margin (%) EPS (Rs) 1600 14.7% 1
Slide 8: 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 9: 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 10: 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 FY 2020
Slide 11: 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 3.2 62 0.6 0.6 0.8 0.2 0.2 0.2 0.1 FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY20
Slide 12: Business Overview
Financial Highlights 2 Business Overview Segment Information Government Projects Exports and Other Segments Investment Rationale Annexures © 2024, All Rights Reserved - www.shaktipumps.com
Slide 13: Company at a Glance
Company at a 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 & an integrated player focused on gas, metals & mining and others manufacturing of fabrication technology
Slide 14: 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 15: 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 Unit I – Main unit: (Total Area-16 acres) manufacturing all the key Main Unit (I) components required for pumps an
Slide 16: High Tech Manufacturing Facilities - Defining global standards
High Tech Manufacturing Facilities - Defining global standards © 2024, All Rights Reserved - www.shaktipumps.com 15
Slide 17: 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 18: Varied Range of Applications
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 19: Segment Information
Financial Highlights Business Overview 3 Segment Information Government Projects Exports and Other Segments Investment Rationale Annexures © 2024, All Rights Reserved - www.shaktipumps.com
Slide 20: Diversified Customer Mix – Reduces the customer concentration risk
Diversified Customer Mix – Reduces the customer concentration risk Government SPIL supplies solar pumps to farmers through various State Governments • PM KUSUM Scheme (Component B & C) 69% Projects Revenue Share • Non PM KUSUM Scheme in FY24 Exports SPIL supplies solar enabled water pumping systems
Slide 21: Diversified Customer Mix – Reduces the customer concentration risk
Diversified Customer Mix – Reduces the customer concentration risk FY2020 FY2021 FY2022 FY2023 FY2024 69% 67% 69% 58% 32% 33% 35% 24% 21% 22% 19% 16% 15% 9% 10% Customers under Govt. Projects Export Customers Other Customers Highest revenue share with 2nd largest revenue segment Other Customers incl
Slide 22: Government Projects
Financial Highlights Business Overview Segment Information 3.1 Government Projects Exports and Other Segments Investment Rationale Annexures © 2024, All Rights Reserved - www.shaktipumps.com
Slide 23: Why are Solar Pumping Systems the need of the hour?
Why are Solar Pumping Systems the need of the hour? Working of a Existing Grid System Pump ▪ A solar-powered pump is a pump PM supporting Solar power to running on solar energy push farmer income generated by photovoltaic panels or the radiated thermal energy PM speech on Solar pump available from c
Slide 24: 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 ▪ Pradhan Mantri - Kisan Urja Suraksha Evam ▪ PM KUSUM scheme (Component
Slide 25: 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 26: 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 27: SPIL – Government Projects Performance
SPIL – Government Projects Performance • 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 SPIL has ~26% domestic
Slide 28: Exports and Other Segments
Financial Highlights Business Overview Segment Information Government Projects 3.2 Exports and Other Segments Investment Rationale Annexures © 2024, All Rights Reserved - www.shaktipumps.com
Slide 29: Presence across Continents – Leading to Revenue & Margin expansion
Presence across Continents – 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 F
Slide 30: 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 31: New Businesses - Electric Vehicles Segment
New Businesses - 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 stations, battery m
Slide 32: Investment Rationale
Financial Highlights Business Overview Segment Information Government Projects Exports and Other Segments 4 Investment Rationale Annexures © 2024, All Rights Reserved - www.shaktipumps.com
Slide 33: Why Shakti Pumps?
Why Shakti Pumps? Strong Order Book Additional Orders Received During Q4FY24 Total Order Book of ~Rs. 2,400 Crores ~ Rs. 250 Crores from as on 31st March 2024 Haryana (Rs. 157.6 Crores) to be executed within 18 months Maharashtra (Rs. 93.0 Crores) Emphasis on R&D and Technology Capabilities to manuf
Slide 34: Strong Order Book
Strong Order Book ORDER BOOK AS ON 31st March 2024 Order Value* (Rs. Crores) COMPONENT B - Off-Grid Solar Photovoltaic Water Pumping Systems Maharashtra State Electricity Distribution Company Limited (MSEDCL) & 1,590 Maharashtra Energy Department Agency (MEDA) Haryana Renewable Energy Department (HA
Slide 35: 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 36: Annexures
Financial Highlights Business Overview Segment Information Government Projects Exports and Other Segments Investment Rationale 5 Annexures © 2024, All Rights Reserved - www.shaktipumps.com
Slide 37: 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 38: Experienced Management Team
Experienced Management Team Mr. Dinesh Patidar Mr. Ramesh Patidar Managing Director Chairman A Graduate in Business Administration with having A visionary, self-made industrialist and leader with a more than 18 years of experience in Shakti. Looks after strong business acumen and knowledge in develo
Slide 39: Experienced Management Team
Experienced Management Team Dr Chinmay Jain Mr. Ravi Patidar Chief Technical Officer Company Secretary An M. E. in electrical engineering from Indian Institute of A Commerce graduate, and also hold the degree of Science, Bangalore, he has a Ph. D. degree from the L.L.B. He is an Associate Member of
Slide 40: 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 31st March 2024 BSE Ticker 531431 NSE Symbol SHAKTIPUMP Capital Goods Industry (Solar Pumps) Ma
Slide 41: 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 42: 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 43: Thank You
THANK YOU Shakti Pumps (India) Limited: Ernst & Young, LLP: Mr. Dinesh Patel, CFO Vikash Verma ✉ dinesh.patel@shaktipumps.com ✉ vikash.verma1@in.ey.com Rohit Anand ✉ rohit.anand4@in.ey.com Riddhant Kapur ✉ riddhant.kapur@in.ey.com Regd. Office & Works: Plot No. 4O1-,402 & 413, industrial Area, Secto