Shakti Pumps (india) Limited · NSE:SHAKTIPUMP

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

39 slides from Shakti Pumps (india)'s investor presentation, May 6, 2023

  1. Slide 1: Exchange filing cover letter

    Date: - 06/05/2023 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-

  2. Slide 2: Investor Presentation May 2023

    Investor Presentation May 2023 Shakti Pumps (India) Limited www.shaktipumps.com BSE: 531431 | NSE: SHAKTIPUM P |ISIN: INE908D01010 05-05-2023 © 2023, All Rights Reserved - www.shaktipumps.com 1

  3. 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

  4. Slide 4: Contents

    Contents Sr Section Page 1 Financial Highlights 4 2 Business Overview 12 3 Key Drivers 23 4 Annexure 35 © 2023, All Rights Reserved - www.shaktipumps.com 3

  5. Slide 5: Financial Highlights

    Investor Presentation Financial Highlights © 2023, All Rights Reserved - www.shaktipumps.com 4

  6. Slide 6: Management Commentary on Performance

    Management Commentary on Performance "It gives me great pleasure to announce that the Solar Energy Corporation of India Limited (SECI) has sanctioned the issuance of new tenders for approximately 8.57 lakh solar pumps under the PM-Kusum scheme III, and Shakti Pumps has qualified in 21 states to prov

  7. Slide 7: Q4 FY23 Consolidated Income Statement

    Q4 FY23 Consolidated Income Statement Particulars (Rs Mn) Q4FY23 Q4FY22 YoY Q3FY23 QoQ FY23 FY22 YoY Revenue from Operations 1,827 3,846 (52.5%) 3,142 (41.9%) 9,677 11,785 (17.9%) EBITDA 109 363 (70.0%) 219 (50.2%) 666 1,105 (39.7%) EBITDA Margins % 6.0% 9.4% (347 bps) 7.0% (100 bps) 6.9% 9.4% (249

  8. Slide 8: Quarterly Comparative Charts

    Quarterly Comparative Charts Revenue (Rs Mn) EBITDA (Rs Mn) and EBITDA Margin (%) 9.4% 9.4% 11,785 1200 10.0% 6.9% 9.0% 9,677 1000 8.0% 6.0% 7.0% 800 6.0% 600 5.0% 1105 3,846 4.0% 400 3.0% 1,827 666 200 2.0% 363 109 1.0% 0 0.0% Q4FY22 Q4FY23 FY22 FY23 Q4FY22 Q4FY23 FY22 FY23 PAT (Rs Mn) and PAT Marg

  9. Slide 9: 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

  10. Slide 10: 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,

  11. 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) Break-up of Operating Costs as a % of Revenue 11,785 9,297 9,677 14.1% 4.4% 10.8% 9.7% 4.7% 9.4% 5.5% 17.7% 9.4% 14.7% 5,464 3,828 1,105 1,413 76.8% 76.8% 65.0% 70.6% 8

  12. 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 7.1 153 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 FY202

  13. Slide 13: Business Overview – Pumping Growth

    Investor Presentation Business Overview Pumping Growth © 2023, All Rights Reserved - www.shaktipumps.com 12

  14. 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

  15. Slide 15: 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

  16. 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

  17. 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

  18. Slide 18: 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%

  19. 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

  20. Slide 20: High Tech Manufacturing Facilities - Defining global standards

    High Tech Manufacturing Facilities - Defining global standards © 2023, All Rights Reserved - www.shaktipumps.com 19

  21. 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

  22. 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

  23. 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: ₹ 470 mn, PAT: ₹ 41 mn in FY2023 Shakti Energy - 100% WOS has 1,00,000 solar structu

  24. Slide 24: Key Drivers

    Investor Presentation Key Drivers (to capture growing solar pumps and allied markets) © 2023, All Rights Reserved - www.shaktipumps.com 23

  25. 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

  26. 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

  27. 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

  28. 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% -

  29. 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

  30. 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 (component B) 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

  31. 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 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

  32. 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

  33. 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 ▪

  34. 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

  35. Slide 35: 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

  36. Slide 36: Annexure

    Investor Presentation Annexure © 2023, All Rights Reserved - www.shaktipumps.com 35

  37. 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:

  38. 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

  39. 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

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