Shakti Pumps (india) Limited · NSE:SHAKTIPUMP

Shakti Pumps (india) — Investor Presentation (August 2023)

38 slides from Shakti Pumps (india)'s investor presentation, Aug 12, 2023

Slide 1: Investor Presentation
Investor Presentation August 2023 Shakti Pumps (India) Limited www.shaktipumps.com BSE: 531431 | NSE: SHAKT IPUM P |ISIN: INE908D01010 12-08-2023 1 © 2023, All Rights Reserved - www.shaktipumps.com
Slide 2: 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 5: Management Commentary on Performance
Management Commentary on Performance “The Solar Energy Corporation of India Ltd (SECI) had sanctioned the release of tenders for 8.57 lakh pumps in March 2023, and as communicated earlier, we had expected orders to begin in Q1FY24. However, due to a delay in receiving final approval from the Ministr
Slide 6: Q1 FY24 Consolidated Income Statement
Q1 FY24 Consolidated Income Statement Particulars (Rs Mn) Q1FY24 Q1FY23 YoY Q4FY23 QoQ FY23 FY22 YoY Revenue from Operations 1,131 2,545 (55.6%) 1,827 (38.1%) 9,677 11,785 (17.9%) EBITDA 79 213 (62.9%) 109 (27.2%) 666 1,105 (39.7%) EBITDA Margins % 7.0% 8.4% (138 bps) 6.0% 105 bps 6.9% 9.4% (249 bps
Slide 7: Quarterly Comparative Charts
Quarterly Comparative Charts Revenue (Rs Mn) EBITDA (Rs Mn) and EBITDA Margin (%) 9.4% 11,785 1200 10.0% 8.4% 6.9% 9.0% 9,677 1000 7.0% 8.0% 800 7.0% 6.0% 600 5.0% 1105 4.0% 2,545 400 3.0% 666 1,131 2.0% 200 213 79 1.0% 0 0.0% Q1FY23 Q1FY24 FY22 FY23 Q1FY23 Q1FY24 FY22 FY23 PAT (Rs Mn) and PAT Margi
Slide 8: Consolidated Income Statement
Consolidated Income Statement Particulars (Rs Mn) FY19 FY20 FY21 FY22 FY23 Revenue from Operations 5,464 3,828 9,297 11,785 9,677 EBITDA 884 114 1,413 1,105 666 EBITDA Margins % 16.2% 3.0% 15.2% 9.4% 6.9% Depreciation and Amortization Expense 150 172 184 186 184 Finance Cost 178 208 162 157 192 PBT
Slide 9: Consolidated Balance Sheet
Consolidated Balance Sheet Particulars (Rs Mn) FY19 FY20 FY21 FY22 FY23 Assets Net Fixed Assets 1,522 1,539 1,481 1,463 1,481 Other Non Current Assets 196 170 214 48 152 Current Assets 4,116 3,698 5,009 7,126 5,620 Total Assets 5,834 5,406 6,705 8,637 7,253 Liabilities Net Worth 2,904 2,652 3,406 3,
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 11,785 9,297 9,677 14.1% 4.4% 5.5% 9.7% 4.7% 9.4% 10.8% 17.7% 9.4% 14.7% 5,464 3,828 1,105 1,413 76.8% 76.8% 65.0% 70.6% 884 451 756 648 666 241 59.3% 114 -141 FY 2019 FY 2
Slide 11: Key Financial Highlights – Key Ratios
Key Financial Highlights – Key Ratios Optimum capital structure with high coverage ratio (x) Improving working capital cycle 8.8 212 7.1 153 5.0 121 119 119 4.5 115 3.9 104 102 3.5 3.5 3.2 91 87 92 81 75 74 62 0.5 0.6 0.6 0.8 0.2 0.2 0.2 FY2019 FY2020 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022
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 & gas, has made strong presence in the pumps metals & mining and others industry  Diversified customer m
Slide 14: Have been in the pumps business since last 4 decades
Have been in the pumps business since last 4 decades Received 3rd patent for Received first Inventing Implementation of patent ‘Switching Listed on the PM-KUSUM scheme Circuit To Start Bombay stock Corporate Excellence Received IMC Set up a separate SEZ Single Phase exchange Received R & D RBNQ Star
Slide 15: 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 16: 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 17: Diversified Customer Mix – Reduces the customer concentration risk
Diversified Customer Mix – Reduces the customer concentration risk FY2019 FY2020 FY2021 FY2022 FY2023 69% 67% 58% 41% 33% 33% 35% 32% 25% 24% 22% 19% 16% 15% 9% Customers under Govt Projects Export Customers Other Customers Highest revenue share with 2nd largest revenue Other Customers including 67%
Slide 18: 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 20: Experienced Management Team with robust Corporate Governance Standards
Experienced Management Team with robust Corporate Governance Standards Mr. Dinesh Patidar Chairman 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 decades of expe
Slide 21: 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 22: 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: ₹ 470 mn, PAT: ₹ 41 mn in FY2023 Shakti Energy - 100% WOS has 1,00,000 solar structu
Slide 24: 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 25: 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 26: 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 27: Kusum – Benefitting farmers to the core and slowing the base issues in the sector
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 28: 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 29: Huge Addressable market for SPIL providing immense opportunities
Huge Addressable market for SPIL providing immense opportunities  Global solar industry was valued at Solar Pumps in India – Market Size (component B) Large Headroom for USD 50 bn in 2019 and is estimated Growth - Water Pump Market to grow by 26% to reach USD 200 bn KUSUM 3 & Particulars KUSUM 1 KU
Slide 30: Emphasizing on technological improvement to further drive future growth
Emphasizing on technological improvement to further drive future growth Regular addition of new products Awarded 3 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 31: 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 32: 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 33: 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 34: Revenue reported a decent CAGR growth of ~15% during FY2019-23
Revenue reported a decent CAGR growth of ~15% during FY2019-23 11,785 Fig. in Rs million 9,677 9,297 5,464 3,828 FY2019 FY2020 FY2021 FY2022 FY2023 Revenue is expected to report a strong growth underpinned by strong government initiatives, strong product portfolio and in-house R&D infrastructure to
Slide 36: 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 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: 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 Ri

Shakti Pumps (India) — Investor Presentation (August 2023) on 6ix

Shakti Pumps (india) — Investor Presentation (August 2023)

Slide 1: Investor Presentation

Slide 2: Disclaimer

Slide 3: Contents

Slide 4: Financial Highlights

Slide 5: Management Commentary on Performance

Slide 6: Q1 FY24 Consolidated Income Statement

Slide 7: Quarterly Comparative Charts

Slide 8: Consolidated Income Statement

Slide 9: Consolidated Balance Sheet

Slide 10: Key Financial Highlights

Slide 11: Key Financial Highlights – Key Ratios

Slide 12: Business Overview – Pumping Growth

Slide 13: Company at a Glance

Slide 14: Have been in the pumps business since last 4 decades

Slide 15: Diversified Product Range - Inhouse manufacturing of energy efficient products

Slide 16: Varied Range of Applications - Provide less dependency on any one sector

Slide 17: Diversified Customer Mix – Reduces the customer concentration risk

Slide 18: State-of-art Manufacturing Facilities – with strong backend support

Slide 19: High Tech Manufacturing Facilities - Defining global standards

Slide 20: Experienced Management Team with robust Corporate Governance Standards

Slide 21: Experienced Management Team with robust Corporate Governance Standards

Slide 22: Corporate Structure – Providing Global Presence

Slide 23: Key Drivers

Slide 24: Why Solar Pumping Systems are need of hour?

Slide 25: Government Initiatives to support Solar Power Generation

Slide 26: Kusum - A initiative to transform agriculture sector

Slide 27: Kusum – Benefitting farmers to the core and slowing the base issues in the sector

Slide 28: Kusum - Benefitting Government to move away from fossil to renewable sources

Slide 29: Huge Addressable market for SPIL providing immense opportunities

Slide 30: Emphasizing on technological improvement to further drive future growth

Slide 31: Presence across Continents – Leading to Revenue & Margin expansion

Slide 32: Retail demand – Well supported by strong distribution network and new product launch

Slide 33: Strong backend support to improve customer connect

Slide 34: Revenue reported a decent CAGR growth of ~15% during FY2019-23

Slide 35: Annexure

Slide 36: Project Execution Process (PM KUSUM Scheme)

Slide 37: ESG Initiatives for Sustainable Growth of Business

Slide 38: Thank You