Q1 2025 Shakti Pumps (India) Ltd Earnings Call Transcript
Key Points
- Revenue increased to INR567.6 crores in Q1 FY25 from INR113.1 crores in Q1 FY24, marking a fourfold growth.
- EBITDA rose to INR135.9 crores from INR27.9 crores in the same quarter last year, with margins expanding to 23.9% from 7%.
- Profit after tax surged to INR92.6 crores compared to INR1 crore in Q1 FY24.
- Gross margin improved significantly to 15.3% from 2.9% in the previous fiscal's corresponding quarter.
- The company's long-term credit rating was upgraded to A+ stable by India Rating and Research.
- Concerns about the sustainability of current margin levels due to potential fluctuations in raw material prices.
- Competitive intensity in the market is increasing, which could impact future profitability.
- Uncertainty regarding the timely completion of large pilot projects and their impact on future financials.
- Potential risks associated with the company's reliance on government tenders and contracts.
- Challenges in maintaining high growth rates in the face of market saturation and new entrants.
Ladies and gentlemen, welcome to the Shakti Pumps India Limited Q1 FY25 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, Mr. Rohit.
Good afternoon, everyone. And 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.
We'll take us forward through the financial results and the developments. 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
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