Shakti Pumps (India) Ltd (BOM:531431)
₹ 4589.55 -123.05 (-2.61%) Market Cap: 91.95 Bil Enterprise Value: 91.72 Bil PE Ratio: 26.99 PB Ratio: 9.76 GF Score: 79/100

Q2 2025 Shakti Pumps (India) Ltd Earnings Call Transcript

Oct 28, 2024 / 08:30AM GMT
Release Date Price: ₹4474.95 (+5.00%)

Key Points

Positve
  • 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
  • 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.
Operator

Ladies and gentlemen, good day and welcome to the Q2 and H125 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, sir.

Rohit Anand
Ernst & Young LLP - Assisstant Manager

Good 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 to the financial results and development and to answer your questions today.

We have the senior management of Shakti Pumps (India) Ltd, represented by Mr. Dinesh Patidar, Chairman, Mr. Ramesh Patidar, managing director, Mr. Dinesh Patel, Chief Financial Officer and Mr. Ravi Patidar CS and

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