Shakti Pumps reports massive 402% revenue growth in Q1FY25—Find out how!

Shakti Pumps (India) Limited (SPIL), a leading manufacturer of solar stainless-steel submersible pumps, pressure booster pumps, pump-motors, controllers, and inverters, announced robust financial results for Q1FY25. The company reported revenue of Rs. 568 Crores and a Profit After Tax (PAT) of Rs. 93 Crores for the quarter ending June 30, 2024.

SPIL’s Chairman, Dinesh Patidar, expressed his satisfaction with the company’s performance, noting that the revenue growth and enhanced profitability were due to accelerated execution of existing orders in both domestic and export markets. Patidar attributed the improved margins to a decline in raw material prices and economies of scale achieved during the quarter.

The company’s revenue for Q1FY25 stood at Rs. 567.6 Crores, a remarkable 402% increase compared to Rs. 113.1 Crores in Q1FY24. EBITDA rose to Rs. 135.9 Crores from Rs. 7.9 Crores in the same period last year, reflecting an EBITDA margin of 23.9%, up from 7.0%. The PAT saw an extraordinary growth to Rs. 92.6 Crores from Rs. 1.0 Crore, with the PAT margin expanding to 16.3% from 0.9%.

Patidar highlighted that the company maintains a healthy order book of approximately Rs. 2,000 Crores, expected to be executed over the next 15 months. He expressed optimism about future order inflows from various states, driven by the increasing recognition of the benefits of deploying solar pumps for farmers by state governments and electricity boards.

Additionally, SPIL continues to see strong momentum in the export market, contributing positively to the company’s growth. The company’s long-term credit rating was upgraded to IND A+ / Stable, and its short-term rating was reaffirmed at IND A1 by India Ratings & Research, reflecting its strong financial position and operational capabilities.

Shakti Pumps has received another patent from the Government of India, bringing its total patents to 14 out of 29 applied, showcasing its technological edge. The company, founded in 1982 and converted to a public limited company in 1995, manufactures a wide range of products for solar pump installation in-house, including Variable Frequency Drives, structures, motors, and inverters.

Industry experts believe that Shakti Pumps’ focus on sustainable innovation and reliability in solar pumping solutions positions it well for continued success. The company’s commitment to transforming the agriculture sector through solar pump technology and its extensive product range underscore its leadership in the market.

Financial Highlights (Consolidated)

Q1FY25 vs. Q1FY24:

– Revenue from Operations: Rs. 567.6 Crores vs. Rs. 113.1 Crores (402% YoY growth)

– EBITDA: Rs. 135.9 Crores vs. Rs. 7.9 Crores (1,614% YoY growth)

– EBITDA Margin: 23.9% vs. 7.0% (1,693 bps increase)

– Profit Before Tax: Rs. 125.6 Crores vs. Rs. 0.7 Crore (17,220% YoY growth)

– Profit After Tax: Rs. 92.6 Crores vs. Rs. 1.0 Crore (9,199% YoY growth)

– PAT Margin: 16.3% vs. 0.9% (1,544 bps increase)