Shakti Pumps (India) Ltd (BOM:531431) Q2 2025 Earnings Call Highlights: Record Revenue Growth ...

In This Article:

  • Revenue (Q2 FY25): INR 634.6 crores, up from INR 152.8 crores in Q2 FY24.

  • Revenue Growth (YoY): 315% increase.

  • EBITDA (Q2 FY25): INR 148.7 crores, up from INR 15.2 crores in Q2 FY24.

  • EBITDA Margin (Q2 FY25): 23.4%, up from 10% in Q2 FY24.

  • Net Profit (Q2 FY25): INR 101.4 crores, with a margin of 16%, up from INR 5.9 crores with a margin of 3.8% in Q2 FY24.

  • Earnings Per Share (Q2 FY25): INR 50.6, up from INR 3.2 in Q2 FY24.

  • Revenue (H1 FY25): INR 1,202.2 crores, up from INR 265.8 crores in H1 FY24.

  • EBITDA (H1 FY25): INR 284.6 crores, with a margin of 23.7%, up from INR 23.1 crores with a margin of 8.7% in H1 FY24.

  • Net Profit (H1 FY25): INR 194.1 crores, with a margin of 16.1%, up from INR 6.9 crores with a margin of 2.6% in H1 FY24.

  • Earnings Per Share (H1 FY25): INR 96.9, up from INR 3.4 in H1 FY24.

Release Date: October 28, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Shakti Pumps (India) Ltd reported a significant revenue growth of 315% year-on-year in Q2 FY25, reaching INR 634.6 crores compared to INR 152.8 crores in Q2 FY24.

  • EBITDA for Q2 FY25 increased to INR 148.7 crores, a substantial rise from INR 15.2 crores in the same quarter of the previous year.

  • The EBITDA margin expanded significantly to 23.4% from 10% in Q2 FY24, indicating improved operational efficiency.

  • The company's earnings per share (EPS) for Q2 FY25 was INR 50.6, a notable increase from INR 3.2 in Q2 FY24.

  • Shakti Pumps (India) Ltd maintained a strong balance sheet with an A+ stable credit rating from India Rating and Research, reflecting financial stability and confidence in order book execution.

Negative Points

  • There was a noted decrease in cash flow from operations due to changes in working capital, raising concerns about liquidity management.

  • Despite the strong financial performance, questions were raised about the sustainability of the current high margins.

  • The company faces potential capacity constraints, which could limit its ability to meet future demand without further expansion.

  • There is a significant outstanding amount in the data book, which could impact cash flow if not managed properly.

  • Concerns were expressed about the potential need for additional debt to support expansion plans, although management assured sufficient existing facilities.

Q & A Highlights

Q: What about margin sustainability? Is it at its peak right now? A: (Response not provided in the transcript)

Q: There seems to be a decrease in cash flow from operations due to changes in working capital. Will this impact ongoing operations? A: Dinesh Patidar, Chairman: No, there is no impact. We have sufficient working capital facilities available from our banking partners, and we are well-positioned with our order book.


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