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

Ladies and gentlemen, good day and welcome to the Q4 and FY '25 Earnings Conference Call of Shakti Pumps (India) Limited. [Operator Instructions] I now hand the conference over to Mr. Rohit Anand from Ernst & Young LLP.

Good afternoon, everyone. Before we proceed, let me remind you that this 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 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 the key developments and to answer your questions today, we have the senior management of Shakti Pumps (India) Limited represented by Mr. Dinesh Patidar, the Chairman; Mr. Ramesh Patidar, the Managing Director; Mr. Dinesh Patel, Chief Financial Officer; and Mr. Ravi Patidar, the Company Secretary and Compliance Officer. We will start the call with a brief overview of the past quarter and full year FY '25 by Mr. Dinesh Patidar, followed by a Q&A session. I will now hand over the call to Mr. Patidar.

Thank you Rohit. [Foreign Language].

Thank you, sir. Good afternoon, everyone. I will only briefly talk about the FY '25 numbers. We have delivered a remarkable performance across all metrics in FY '25. With revenue reaching INR 2,516 crores, reflecting an 83.6% Y-o-Y growth from Rs. INR 1,371 crores in FY '24. The EBITDA for the year was INR 603 crores, a significant growth of 168% compared to INR 225 crores last year. This growth is attributed to higher order execution and our ongoing commitment to operational efficiencies, resulting in an expansion of EBITDA margins to 24% in FY '25, up from 16.4% in FY '24. In terms of PAT, we saw a huge increase of 188% reaching INR 408 crores in FY '25. The PAT margin improved to 16%, a substantial expansion from 10% in FY '24, marking a 589 basis point expansion. Earnings per share for the year was INR 34 compared to INR 12.8 per share in the previous fiscal. This year's performance underscores our robust financial results and solid balance sheet position. While Patidar sir has already emphasized our reduction in receivables this year even with significantly higher revenue, I would like to draw attention to additional key metrics. The company's net worth has increased to approximately INR 1,161 crores by the end of FY '25. And our interest coverage ratio has strengthened to 13.6x in FY '25, up from 11.5x in FY '24. Furthermore, the return on capital employed, ROCE has risen to 43.9% compared to 24.5% in FY '24. And the return on equity has also improved, increasing to 35.2% in FY '25 from 18.8% in FY '24. The Board has proposed a final dividend of INR 1 per share which is 10% of the face value.

[Operator Instructions] Our first question comes from the line of Agastya Dave from CAO Capital.

Congratulations, sir. [Foreign Language]

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The next question comes from Tushar Gupta from Sagun Capital.

Hello. Am I audible?

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Yes, sir, please go ahead.

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I'm so sorry to interrupt. Tushar sir, your line is not coming that audible.

I'm sorry [Technical Difficulty]

Really sorry, sir. Tushar sir, we are not able to hear you. We request you to recheck your connection and get back in the question queue. We'll move on to the next question. Our next question comes from the line of Suvarna Ashish from [ Asterisk ] Capital.

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The next question comes from the line of Ankur Kumar from [ Malsa ] Capital.

Congrats for a good set of numbers. [Foreign Language]

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Your next question comes from Tushar Gupta from Sagun Capital.

Am I audible?

Yes. [Foreign Language]

[Foreign Language] [Technical Difficulty]

Tushar sir, your voice is sounding muffled. If you are using a speaker phone, we request you to use a handset please.

Hello, am I audible right now?

Sir, your voice is breaking in between.

Now [Technical Difficulty]

It is slightly better sir.

[indiscernible] I want to ask that we are planning to install our new plants [Technical Difficulty] and we have to raise the funds [Technical Difficulty]

Okay, Tushar. Tushar, I understood your question. [Foreign Language]

Yes.

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The next question comes from the line of Praful Siddharth from Shravas Capital.

Hi, sir. Congrats on good set of numbers. I just have a couple of questions. So, how many pumps were installed this quarter and the last quarter? And what is the revenue from government this quarter and last quarter?

Okay. So, this quarter, we have installed in solar EPC 18,749 pumps. And for the year, 71,572. And revenue for the quarter from solar EPC is INR 496 crore. And for the year, INR 1,939 crore.

what is the revenue from exports this quarter and last quarter?

This quarter is around INR 125 crore. And for the year, INR 437 crore.

So, this last question. What led to the fall in other expenses from INR 74 crores to INR 55 crores this quarter?

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Yes. So, there is a fall from 74 to 55. Is there any one-off in the previous quarter or is there any other reason for this?

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But quarter-on-quarter, we have broadly the same run rate now. So, INR 650 crores. But other expenses, there is a steep fall of around 20 crores from 75 to 55.

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The next question comes from the line of Darshil Pandya from Finterest Capital.

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The next question comes from Somil Jain from Lucky Investments.

Hello, sir. I have 2 questions. [Foreign Language]

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Your next question comes from the line of Rohit Singh from Nvest Analytics Advisory LLP.

Congrats for good numbers, sir. [Foreign Language]

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The next question comes from the line of Nikhil Abhyankar from UTI Mutual Funds.

Sir, I just wanted some clarification. You mentioned that you have sold 71,500 odd Kusum pumps directly, is it? Or is it direct plus indirect?

This is direct only.

This is direct. And how much will be indirect pumps?

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Next question comes from Deepak Purswani from Swan Investments.

Congratulations for a good set of numbers. [Foreign Language]

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Next question comes from Mahendra Kumar from MK Security Family Office. As there is no response from the line of the current participant, we will move on to the next question. The next question comes from the line of Varun from Equitree Capital.

Congratulations for good set of numbers. Couple of questions. [Foreign Language] So, has there been any execution challenges? [Foreign Language]. And secondly, market share is also seen to reduce across the overall orders. It's around [Technical Difficulty] 17% in Q3. [Foreign Language] So, any reason? [Foreign Language] What do you want to say on that?

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Last question. [Foreign Language]

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Our next question comes from Prateek Bhandari from AART Ventures.

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20% exports?

Yes.

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Next question comes from Amit Kumar from Determined Investments.

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INR 437 crore.

Next question comes from Mohit Jain from MCapital.

Sir, my question was [Foreign Language]

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Next question comes from Vivek Gautam from GS Investment.

[Foreign Language] So, would we still like to go in for this heavy capacity thing and lowering our ROE, ROT? [Foreign Language]

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Our next question comes from Chandan Kumar, a Retail Investor.

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Next question comes from [ Jainam from Saltoro Investment ].

Congratulations on a very good set of numbers. [Foreign Language]

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Our next question comes from the line of Rahul Ranka from Kushals Investments.

[Foreign Language] Sir, I wanted to know, a year later, one year from now, what can be the order book which we might have, sir?

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The next question comes from the line of Ajay Surya from Niveshaay.

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Ladies and gentlemen, due to time constraints, we will take this as our last question. I now hand the conference over to Mr. Dinesh Patidar for closing comments.

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Thank you. On behalf of Shakti Pumps (India) Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines.