Revenue for Q3FY23 stood at Rs 3,142 million, a growth of 17% YoY and 45% QoQ

Solar EPC grew by 29% YoY, Export grew by 32% YoY in Q3FY23

Pithampur, Madhya Pradesh (India), 20 January 2023 – The financial results for the quarter and nine months ended December 31, 2022, have been announced by Shakti Pumps (India) Limited (herein referred to as “SPIL”), a leading manufacturer of stainless-steel submersible pumps, pressure booster pumps, pump-motors, controllers, and inverters among other products. 

Shakti Pumps (India) Limited Chairman and Managing Director Mr. Dinesh Patidar commented on the results, saying, “The company performance during Q3FY23 was decent with revenue registering a growth of 17.0% YoY to Rs 3,142 million as compared to Rs 2,686 million in Q3FY22 supported by strong growth in Solar EPC and export business. Overall, we reported a revenue of Rs 7,850 million in 9MFY23 as compared to Rs 7,940 million in 9MFY22. Our export business has been delivering significantly for us with the export revenue growing by 24.5% YoY to Rs 1,659 million in 9MFY23. Margins remained muted due to the challenging environment with the prevailing high input costs. EBITDA margin at 7.0% in Q3FY23 declined by 320 bps YoY as compared to 10.2% in Q3FY22. However, EBITDA improved marginally by 121 bps on a QoQ basis.

With the ongoing challenges, there are few positive developments under the PM-KUSUM Scheme. The Solar Energy Corporation of India Limited (SECI) has issued new tenders for over 6.66 lakh solar pumps in the month of December 2022 and bidding for these new tenders is expected to be completed by March 2023.

The eligibility criteria for bidding have been raised as compared to the previous tenders which should benefit the major and organized players. We will participate in these new tenders and closely monitor the bids’ pricing. However, we are hopeful of obtaining better rates than previous KUSUM bids due to the stringent eligibility criteria for these new tenders. Major states including Maharashtra, Haryana, Rajasthan, Madhya Pradesh, and Punjab, together account for 82.5% of the total requirement mentioned under the current tenders in the KUSUM scheme. SPIL, one of the largest solar pump manufacturers, has a strong market presence of more than 30-35% in these major tendering states, and we are hopeful of securing decent orders in the current round of tenders which should help us in delivering robust overall performance going ahead.”

Key Financial highlights of the Quarter (Consolidated):

Particulars (Rs Million)Q3FY23Q3FY22YoYQ2FY23QoQ9MFY239MFY22YoY
Revenue from operations3,1422,68617.0%2,16345.3%7,8507,940(1.1%)
EBITDA219273(19.8%)12475.9%557742(25.0%)
EBITDA Margin7.0%10.2%(320 bps)5.8%121 bps7.1%9.3%(225 bps)
Profit Before Tax 148202(26.6%)27447.0%293537(45.5%)
Profit After Tax112148(23.9%)19491.8%219429(48.9%)
PAT Margin3.6%5.5%(192 bps)0.9%270 bps2.8%5.4%(261 bps)
Diluted EPS (Rs.)6.18.0(23.9%)1.0494.2%11.923.3(48.9%)

Financial Highlights:

  • Revenue from operations grew by 17.0% YoY to Rs 3,142 million in Q3FY23. In 9MFY23 revenue was at Rs 7,850 million as against Rs 7,940 million in 9MFY22
  • EBITDA stood at Rs 219 million in Q3FY23 with an EBITDA margin of 7.0%; for 9MFY23, EBITDA was at Rs 557 million with an EBITDA margin of 7.1% 
  • PAT at Rs 112 million in Q3Y23 and Rs 219 million in 9MFY23 

Highlights

  • During the quarter, the Company invested Rs 10 million in its wholly-owned subsidiary, i.e. Shakti Green Industries Private Limited (SGIPL). The consolidated investment reached to Rs 82.6 million post the recent infusion. SGIPL is in the business of manufacturing of EV Chargers, EV Motor and controllers.
  • The Company received the prestigious “Excellence Engineering Export Award” by the Engineering Export Promotion Council of India (EEPC India) on 19th December 2022. EEPC India, a division of the Ministry of Commerce and Industry, Government of India, at its 37th Western Region Awards ceremony presented the honor to SPIL. The Company received the honor for being the star performer in the product group for the 2018–19 financial year in the category of Large Enterprise for Pumps, Compressor, Hydraulic, and Pneumatic Power Engine and their parts.