Shakti Pumps hits 5% upper circuit as profit grows multi-fold in Q2

Shares of Shakti Pumps were locked in a 5 per cent upper circuit at Rs 4,474.95 per share on the BSE in Monday’s intraday deals. The stock price jumped after the company reported a sharp rise in net profits, and despite recording subdued sales for the second quarter of the financial year 2024-25 (Q2FY25). 

 

The company reported a revenue from operations of Rs 634.6 crore in September 2024, up 315.4 per cent from Rs 152.8 crore in September 2023. Sequentially, the revenues rose 11.8 per cent. 

 

The quarterly net profit soared to Rs 101.4 crore, an increase of 1,633.3 per cent compared to Rs 5.9 crore in September 2023.

 

Earnings before interest, tax, depreciation and amortisation (Ebitda) reached Rs 148.7 crore in September 2024, reflecting a significant rise of 878.4 per cent from Rs 15.2 crore in the same period last year.

 

During the quarter under review, the company’s Ebitda margin came in at 23.4 per cent compared to 10 per cent in Q2FY24. 

 

“Our achievements are a direct result of faster execution of orders within both the domestic and international spheres. Profitability margins also witnessed a significant expansion which can be mainly attributed to the realisation of economies of scale, which was facilitated by increased operational activities during the quarter,” said Dinesh Patidar, chairman, Shakti Pumps. 

 

Patidar further said that the company’s order inflow continues to remain robust with the outstanding order book standing at around Rs. 1,800 Crores as on September 2024. “Given our leadership position in the PM KUSUM Scheme, we are confident that we will continue to witness an influx of orders, which will play a pivotal role in our sustained growth,” Patidar added.

 

The company has a total market capitalisation of Rs 8,965.61 crore. Its shares are trading at a price to earnings multiple of 42.02 times and at an earning per share of Rs 101.43. 

 

Shakti Pumps is engaged in the business of manufacturing and marketing stainless steel water pumps and motors under the 'Shakti' brand name.