Shakti Pumps conference call was today at 2:00 pm.
"Vision to be 5000 Crore topline till 2025"
Here are the Key takeaways of the call ππ
"Vision to be 5000 Crore topline till 2025"
Here are the Key takeaways of the call ππ
Business Update:
β’ Business segment has performed well. All the segment did show all time high sales and profit.
β’ Solar Sales is going on a good note.
β’ Management did see a good recovery and expect the margins to remain at a same level.
β’ Business segment has performed well. All the segment did show all time high sales and profit.
β’ Solar Sales is going on a good note.
β’ Management did see a good recovery and expect the margins to remain at a same level.
β’ Cash Flow of the business remain all time.
β’ Company did have order book till April
Cash Flow
β’ Company did delayed the state, order where there were no subsidies. Company only participated where the subsidies are available and the cash is reimbursed earlier.
Conti.
β’ Company did have order book till April
Cash Flow
β’ Company did delayed the state, order where there were no subsidies. Company only participated where the subsidies are available and the cash is reimbursed earlier.
Conti.
β’ As the company is now buying big order of quantity, the creditor days of the company has been shifted increase lot and company is arm twisting the supplier as well.
β’ CFO this quarter was around 60 crores and improvement was majorly due to borrowings which was extended.
β’ CFO this quarter was around 60 crores and improvement was majorly due to borrowings which was extended.
Sales and Margins:
β’ EPC sales did well and the good business was visible from Maharashtra.
β’ The price of 5HP pump was not decreased but the company did sold lower hp pump price in the Haryana state which made good sales and sales margin of the business.
Conti.
β’ EPC sales did well and the good business was visible from Maharashtra.
β’ The price of 5HP pump was not decreased but the company did sold lower hp pump price in the Haryana state which made good sales and sales margin of the business.
Conti.
β’ Continuous Sales and and increasing margins helped maintaining the margins of the business.
Inventory Days
β’ Supplying to Farmers has been around 120 days which has been reduced from the past, as the operational efficiency has been improved.
Inventory Days
β’ Supplying to Farmers has been around 120 days which has been reduced from the past, as the operational efficiency has been improved.
KSUM Tender:
β’ Total tender is around 10,000 crore.
β’ Shakti Pumps is the only leader in Bihar state, hence the company will be receiving good amount of tender.
β’ Company has capacity to increase order book as well as the company is still running at 47% of the capacity only.
β’ Total tender is around 10,000 crore.
β’ Shakti Pumps is the only leader in Bihar state, hence the company will be receiving good amount of tender.
β’ Company has capacity to increase order book as well as the company is still running at 47% of the capacity only.
Future Growth:
β’ Company did has capacity to increase the order size, and the supply it as well, but the company is not doing unitl the there is early payment realization.
β’ If the company only sells pumps then company can easily do turnover of Rs1000.
Conti.
β’ Company did has capacity to increase the order size, and the supply it as well, but the company is not doing unitl the there is early payment realization.
β’ If the company only sells pumps then company can easily do turnover of Rs1000.
Conti.
β’ Company will have to expand to come up to turnover topline of around 5K crore, which is also possible as per mgmt in the near future
Operating Leverage- As the manufacturing is at optimum utilization company there is always an increase in the margins. Margins is to be ~15-16%
Operating Leverage- As the manufacturing is at optimum utilization company there is always an increase in the margins. Margins is to be ~15-16%
KSUM Tender
β’ Entire KSUM Tender sales was a part of the EPC sales only.
β’ Around 10,000 pumps were added by the government out of which around 50% was been taken by Shakti Pumps
β’ Next tender for which pre-bidding is going on, of which finalizing will be done in a month
Conti
β’ Entire KSUM Tender sales was a part of the EPC sales only.
β’ Around 10,000 pumps were added by the government out of which around 50% was been taken by Shakti Pumps
β’ Next tender for which pre-bidding is going on, of which finalizing will be done in a month
Conti
β’ As company did good performance, Shakti Pumps has chance to get good part from the bidding.
β’ Mgmt did expect no delay in the sales as the government action this year shows good signs.
β’ Mgmt did find the action of KSUM which is best for the farmer.
β’ Mgmt did expect no delay in the sales as the government action this year shows good signs.
β’ Mgmt did find the action of KSUM which is best for the farmer.
Plan B of delay of KSUM- In case of delay of the sales, company has plan to sale the manufacturing thing to export as well but company did not expect any delay.
Monsoon impact: Monsoon donot have any impact on sales, there is only difficulty in placing the pump.
Monsoon impact: Monsoon donot have any impact on sales, there is only difficulty in placing the pump.
Success Factor:
β’ 25 crores of Investment in subsidiary which was performed very well for the company.
β’ With owned solar plants company did have decrease in the costing, hence this show good margins int his quarter
β’ For 10000 Pump company did require 1000MW solar required.
β’ 25 crores of Investment in subsidiary which was performed very well for the company.
β’ With owned solar plants company did have decrease in the costing, hence this show good margins int his quarter
β’ For 10000 Pump company did require 1000MW solar required.
Vision of 5000 crore:
β’ Company did have vision of reaching the 5000 crores topline till 2025.
β’ For this company will have expansion at necessary stage, and this will majorly own investment.
β’ Company did have any vision of solar panel or solar cell.
β’ Company did have vision of reaching the 5000 crores topline till 2025.
β’ For this company will have expansion at necessary stage, and this will majorly own investment.
β’ Company did have any vision of solar panel or solar cell.
β’ β’ β’
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