Q1 2027 Shakti Pumps (India) Ltd Earnings Call Transcript
Key Points
- Shakti Pumps (India) Ltd (BOM:531431) reported a 37.9% year-on-year revenue growth for Q1 FY27, reaching INR859 crores.
- The company saw a 57.6% increase in solar pump installations, with 27,608 units installed in Q1 FY27.
- PAT increased by 35% over Q4 FY26, with a PAT margin improvement from 4.5% to 6%.
- The company maintains a healthy and diversified order book of approximately INR1,000 crores.
- Shakti Pumps is expanding into adjacent businesses, including solar rooftop and EV sectors, showing promising growth potential.
- EBITDA margin remained stable at 9.6%, but margins are under pressure due to inflated raw material costs.
- Geopolitical uncertainties are impacting global trade and demand conditions, affecting the export business.
- The company faces challenges with lower realization in some orders, impacting profitability.
- There are ongoing payment-related issues under the PM KUSUM 2.0 scheme, affecting cash flow.
- The company is not currently hedging against raw material price volatility, which could impact future margins.
Ladies and gentlemen, good day, and welcome to the Q1 FY27 earnings conference call hosted by Shakti Pumps (India) Limited. (Operator Instructions) I now hand the conference over to Mr. Rohit Anand from Ernst & Young LLP. Thank you, and over to you, sir.
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 businesses 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 developments and to answer your questions today, we have the senior management of Shakti Pumps (India) Limited, represented by Mr. Dinesh Patidar, Chairman; Mr. Ramesh Patidar, Managing Director; Mr. Ramakrishna Sataluri, CEO, Shakti Energy Solutions Limited; Mr. Dinesh Patel, Chief Financial Officer; Mr.
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