Shakti Pumps (India) Limited (531431) Earnings Call Transcript & Summary
January 29, 2024
Earnings Call Speaker Segments
Operator
operatorLadies and gentlemen, good day, and welcome to the Shakti Pumps (India) Limited Q3 and 9M FY '24 Earnings Conference Call. [Operator Instructions] I now hand the conference over to Mr. Rohit Anand from Ernst & Young LLP. Thank you, and over to you, sir.
Rohit Anand
attendeeGood afternoon, everyone. Before we proceed, let me remind you that the 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 business risks that could cause future result 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, to answer -- and to answer your questions 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 a brief overview of the past quarter by Mr. Patidar, followed by a Q&A session. I will now hand the call to Mr. Patidar. Over to you, sir.
Dinesh Patidar
executiveThank you, Rohit. [Foreign Language] Thank you. Dinesh?
Dinesh Patel
executiveThank you, sir. Good afternoon, everyone. Recorded revenue from operations of INR 495.6 crores in Q3 FY '24, our highest-ever revenue in a quarter, up by 57.7% Y-o-Y from INR 314.2 crores in Q3 FY '23. Our export business registered revenue of INR 62.2 crores. We have also reported our highest-ever number in terms of profitability. EBITDA for the quarter stood at INR 71 crores as against INR 21.9 crores in Q3 FY '23, increased by 224.2% Y-o-Y. EBITDA margin was at 14.3%, expanded significantly by 735 bps from 7% in the corresponding quarter of last year. PAT for the quarter stood at INR 45.2 crores, recording a robust growth of 301% Y-o-Y from INR 11.2 crores and PAT margin at 9.1%, up by 554 bps from 3.6% in Q3 FY '23. For 9 months FY '24, revenue from operations stood at INR 761.5 crores. EBITDA recorded a robust growth of 69%, reaching to INR 94 crores from INR 55.7 crores in the same period of previous fiscal. EBITDA margin is 12.4% in 9 months FY '24, expanded by 527 bps from 7.1% in 9 months FY '23. PAT for the 9 months FY '24 stood at INR 52 crores as against INR 21.9 crores in 9 months FY '23. PAT margin in 9 months FY '24 was at 6.8%, expanded by 405 bps from 2.8% in 9 months FY '23. With this, now I request the moderator to open the floor for question and answer. Thank you.
Operator
operator[Operator Instructions] The first question is from the line of Vikram from Niveshaay Investment Advisors.
Vikram Sharma
analystCongratulations for a good set of numbers. So sir, I wanted to inquire on how we are managing volatility in raw material prices. So solar module prices has corrected a lot in last 3, 4 months. So is our higher margin of 14% is due to solar module prices? Or what is main reason behind significant margin improvement?
Dinesh Patidar
executive[Foreign Language]
Vikram Sharma
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Vikram Sharma
analystOkay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Vikram Sharma
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Operator
operatorThe next question is from the line of [ Vishal ] from Svan Investments.
Unknown Analyst
analystCongratulations for a great set of numbers. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystOkay. Okay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystOkay. Okay, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystGreat, sir. Great. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystOkay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystOkay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystOkay. Okay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystOkay, okay, okay. [Foreign Language] gross margin [Foreign Language] Has mix been a problem?
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystOkay. Okay. So, Sir, [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analyst[Foreign Language]
Operator
operatorSir, I'm sorry to interrupt. May I request that you return to the question queue for follow-up questions as there are several participants waiting for their turn?
Unknown Analyst
analystOkay, okay, fine. Fine.
Operator
operatorThe next question is from the line of Dhruv Bajaj from Smart Sync Investment Advisory Services.
Dhruv Bajaj
analyst[Foreign Language]
Dinesh Patidar
executiveYes. [Foreign Language]
Dhruv Bajaj
analystGot it, sir. That's helpful, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Dhruv Bajaj
analystOkay, sir. [Foreign Language]
Operator
operatorSir, may I request that you return to the question queue, sir, for follow-up questions as there are several participants waiting, sir? The next question is from the line of Harshil Solanki from Equitree Capital.
Harshil Solanki
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Harshil Solanki
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Harshil Solanki
analyst[Foreign Language]
Dinesh Patidar
executiveYes, yes. Definitely. [Foreign Language]
Harshil Solanki
analystOkay, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Harshil Solanki
analystLast question, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Ramesh Patidar
executive[Foreign Language]
Harshil Solanki
analyst[Foreign Language]
Ramesh Patidar
executive[Foreign Language]
Harshil Solanki
analyst[Foreign Language]
Ramesh Patidar
executive[Foreign Language]
Operator
operatorThe next question is from the line of [ Ronak ] from RoboCapital.
Unknown Analyst
analystHello?
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystFirstly, congratulations for the good results. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analyst[Foreign Language] That is all from my side.
Operator
operatorThe next question is from the line of Hardik Vyas from ET NOW.
Hardik Vyas
attendeeCongratulations, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendee[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendee[Foreign Language]
Dinesh Patidar
executiveRight, right. [Foreign Language]
Hardik Vyas
attendee[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendeeRight. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendeeOkay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendeeRight, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendee[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendee[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendee[Foreign Language] Sir, last question. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendeeDecember quarter?
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendee[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Dinesh Patel
executive[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendee[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Hardik Vyas
attendee[Foreign Language] That's all from my side.
Operator
operatorThe next question is from the line of Kush Tandon from Ananta Capital.
Kush Tandon
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Kush Tandon
analystOkay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Kush Tandon
analystOkay, sir. And our margin guidance, sir, 12% on the lower side given that we can do INR 550 crores, INR 600 crore quarterly revenue. So sir, you are being conservative just like that, or [Foreign Language].
Dinesh Patidar
executive[Foreign Language]
Kush Tandon
analystOkay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Operator
operatorThe next question is from the line of [ Ankur Kumar ] from Alpha Capital.
Unknown Analyst
analystCongrats on a very good set of numbers. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analyst[Foreign Language]
Dinesh Patidar
executiveRight. [Foreign Language]
Unknown Analyst
analystGot it, sir. [Foreign Language] Next year will be like 25% growth over this number?
Dinesh Patidar
executiveRight.
Unknown Analyst
analystGot it, sir. [Foreign Language] Can you comment on that?
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analystGot it, sir. [Foreign Language] Good number, sir.
Dinesh Patidar
executiveGood number. Good number, yes.
Operator
operatorThe next question is from the line of Gauri from Old Bridge Capital Management.
Gauri Anand
analystYes. And sir, congratulations -- many congratulations to you for this excellent performance. [Foreign Language] order execution capacity is [ INR 2,400 ] enabling resolution for that INR 200 crore QIP, which is when you talk about execution, [Foreign Language] this year, INR 1,250 crores revenue, [Foreign Language] let's say, about anywhere between INR 1,600 crores to INR 1,700 crores [Foreign Language]. What I'm asking is that you gave us a guidance on the order book. But actually, the execution is annual, right? So you still have that much capacity and you don't have to necessarily expand. Can you help me understand this?
Dinesh Patidar
executiveYes, yes, yes. I understand. Madam Gauri, madam, I understand very good. [Foreign Language]
Gauri Anand
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Gauri Anand
analyst[Foreign Language] Like what is the sense on working capital, sir? [Foreign Language] you will be able to get money in time? Or what is -- how is the contract really structured?
Dinesh Patidar
executive[Foreign Language]
Gauri Anand
analyst[Foreign Language] 90% of the payment [Foreign Language] profit component [ mandate is ] 10% [Foreign Language].
Dinesh Patidar
executive[Foreign Language]
Gauri Anand
analystOkay. Any other [Foreign Language] mandate [Foreign Language].
Dinesh Patidar
executive[Foreign Language]
Gauri Anand
analystOkay. Okay, sir. And you don't expect a slippage here? I mean, whatever is the 120 days kind of a cycle, you don't expect this to elongate. Is that right? [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Operator
operatorThe next question is from the line of Yashi Lohia from The MicroCap Minute.
Yashi Lohia
analystCongratulations, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Yashi Lohia
analystRight, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Yashi Lohia
analystRight, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Yashi Lohia
analystOkay. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Yashi Lohia
analystAll right, sir. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Operator
operatorThe next question is from the line of [ Vivek Gautam ] from [ GS Investment ].
Unknown Analyst
analystTo be honest, I have recently started tracking the company, so not much idea. But sir, the concerns on the sales to Africa regarding the receivables are there for other companies. So how are we planning to tackle that in the Africa and other nations? Is it a World Bank-funded project so that we get payment through LC? And similar queries on the government business, B2G business in India, it's also having some concerns on the receivables. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Analyst
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Operator
operatorThe next question is from the line of Rikesh Parikh from Rockstud Capital LLP. [indiscernible] Hello, Mr. Rikesh Parikh?
Rikesh Parikh
analystYes. Congratulations for a good set of numbers. Sir, I just wanted to understand your progress on the EV side wins, any further progress on the order inflow and the investment we are going to do over the next [ 1 ] years?
Dinesh Patidar
executive[Foreign Language]
Rikesh Parikh
analyst[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Operator
operatorThe next question is from the line of [ Rajasekar MS ], an individual investor.
Unknown Attendee
attendeeCongrats on a good set of numbers. I've been following your company for a quite long time. [Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Attendee
attendee[Foreign Language]
Dinesh Patidar
executive[Foreign Language]
Unknown Attendee
attendee[Foreign Language] That's what I would put it across, correct?
Dinesh Patidar
executiveCorrect, correct, correct. [Foreign Language]
Operator
operatorDue to time constraint, that was the last question for today. I would now like to hand the conference over to Mr. Dinesh Patidar for closing comments. Over to you, sir.
Dinesh Patidar
executive[Foreign Language] Thank you. Thank you.
Operator
operatorThank you. On behalf of Shakti Pumps (India) Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
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