Shakti Pumps (India) Limited (531431) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Shakti Pumps (India) Limited Q1 FY '24 Earnings Conference Call. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Rohit Anand from Ernst & Young LLP. Thank you, and over to you.

Before we proceed, let me remind you that discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our businesses that would cause future results, performance or achievements to differ significantly from what is expressed or implied by such forward-looking statements to take us forward through the financial results and development. And to answer your question today, we have the senior management of Shakti Pumps (India) Limited represented by Mr. Dinesh Patidar, Chairman; Mr. Ramesh Patidar, Managing Director; Mr. Dinesh Patel, Chief Financial Officer; and Mr. Ravi Patidar, CS and Compliance Officer. We will start the call with an overview of this past quarter by Mr. Dinesh Patidar followed by our Q&A session. I will now hand over the call to Mr. Patidar. Over to you, sir.

[Interpreted] Thank you, sir. Good afternoon. Revenue from operations stood at 1,131 million in Q1 FY '24. Our export business registered a revenue of INR 647 million and has continued to grow strongly by 59% Y-o-Y from INR 407 million in Q1 FY '22. EBITDA for the quarter was INR 79 million and EBITDA margin was at 7%. Paid for the quarter stood at INR 10 million. We have adequate liquidity and has a strong credit profile backed by our established market position on account of a robust distribution network and diversified product portfolio. With our strong balance sheet and the key metrics, we are confident in the timely completion of Kusom orders and further consolidated our position in the market. With this, now I request the moderator to open the floor for question and answer.

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] We have our first question from the line of [ Digant Haria ] from [indiscernible].

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We have our next question from the line of Ankit from JHP Securities.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We have our next question from line of [ Mira Ashar ] from Latin Manharlal Securities.

Sir, thank you for the opportunity. [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

That should be executed within the next 2 years, right?

Right.

[Foreign Language]

[Foreign Language]

Okay. And sir, do we have the enough manpower to handle such a big opportunity, which is going to come ahead in next 2 to 3 years?

Definitely, both is ready.

We have our next question from the line of [ Ram Sider ] from Mandurah Capital.

[Foreign Language] Can you give me approximately how much profit you can make for some?

[Foreign Language]

No. Can you give me some numbers, net or something like that?

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We have our next question from the line of Harshil Solanki from Equitree Capital.

Good afternoon. Sir, there are multiple questions here. [Foreign Language]

[Foreign Language]

Sir, volume?

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Operator Instructions] We'll take the next question from the line of [ Par Marta ], an individual investor.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] So are we going to get back to that number any time soon? [Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

My last question was [Foreign Language]

[Foreign Language]

Okay. So are you expecting that the second half of the year should be [Foreign Language]

[Foreign Language]

We have our next question from the line of [ Ketan Tale ] from Robo Capital.

[Foreign Language]

[Foreign Language]

Okay, and margin?

[Foreign Language]

We have our next question from the line of [ Ashok, ] an individual Investor.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

Next question is from the line of [ Ajay Suria ] from [indiscernible].

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

Next question is from the line of [ Ketan Drua ], an Individual Investor.

Sir, I have 2 questions. First question, I just wanted to say in the context of the competition that you have because of the delay in the Kusum orders over the last 1.5 years. So I've seen some of your companies like [ KB and Pinatel ], the people actually also having one of their own pump systems, and they say they want to enter at least case, we said that we want to do this in a big way. So do you see any impact of that in terms of your market share or use share?

[Foreign Language]

The second question, it was on the margins. But I think you already mentioned that you will do 10%. The third question I had was this capacity. After capacity was 5 lakh pumps per annum, right? And if you are doing 10,000 pumps per month, it will still be a fraction of what you are capable of. Is that correct, sir?

[Foreign Language]

[Foreign Language] And specifically on the pricing of the last time policy average price is around INR 2.8 to INR 3 lakhs per pump. Is that still holding good even with the new Kusom?

Yes. So margin increase [ wide ].

[Operator Instructions] We have a next question from the line of [ Jatin Koradia ], an investor.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

Thank you. We have our next question from the line of Sanjay Kumar from [ iTOPS ].

To position, you mentioned that Stability has successfully developed motors and AV controllers, any talk about this, what's the technology of the moat BLDC or PMS or the newer scales selectins motors? What is the market currently and what market share you have comical.

[Foreign Language]

Which segment, sir? Is it 2-wheelers, 3-wheelers...

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We have a next question from the line of [ Denis Nara ] from Harsh Investments.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

We have our next question from the line of [ Param Maki ] from JHP.

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language] So what is giving us the confidence at this point online within the next, say, 1 or 2 quarters?

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

[Foreign Language]

Ladies and gentlemen, due to time constraints that was the last question for today. I now hand over the call to Mr. Dinesh Patidar for closing comments. Over to you, sir.

[Foreign Language] Thank you.

Thank you. On behalf of Shakti Pumps (India) Limited, that concludes your conference. Thank you for joining us, and you may now disconnect your lines. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]