Shares of Shakti Pumps surged to a 5% upper circuit, closing at Rs 4,822.55, following the announcement of a significant order valued at Rs 116.4 crore under the central government’s PM-KUSUM scheme. This contract, awarded by the Haryana Renewable Energy Department (HAREDA), entails supplying, installing, and commissioning 3,174 solar water pumping systems across Haryana. The project is set to be completed within a tight 120-day deadline, underscoring Shakti Pumps’ swift execution capabilities.
The stock has seen impressive growth this year, rallying 368% year-to-date, significantly outpacing the broader market benchmark, Nifty 50, which has gained only 11% in the same period.
Financially, Shakti Pumps has been experiencing rapid growth. In Q2 FY25 (September 2024 quarter), the company reported net sales of Rs 634.59 crore, marking a 315% increase from the same quarter last year. Net profit soared by a remarkable 1,630% year-on-year to reach Rs 101.42 crore, reflecting the company’s ability to capitalize on large-scale government projects and a surge in demand for solar-powered pumping solutions.
“Our achievements are a direct result of faster order execution in domestic and international markets. Enhanced profitability has also been driven by the realization of economies of scale, made possible by our higher operational throughput this quarter,” stated Dinesh Patidar, Chairman of Shakti Pumps. He noted that the company’s expanding margins reflect its ability to manage large orders while keeping operational costs in check efficiently.
Patidar also expressed confidence in Shakti Pumps’ strategic position within the PM-KUSUM Scheme. “As a market leader under the PM-KUSUM initiative, we anticipate a steady inflow of new orders, which will continue to be instrumental in supporting our growth trajectory,” he added.
The company’s order book stood at a robust Rs 1,800 crore as of September 2024, highlighting strong demand visibility for the coming quarters. This substantial backlog includes projects Shakti Pumps expects to fulfil effectively, leveraging its backwards-integrated manufacturing capabilities for efficient, large-scale production.
Patidar emphasized Shakti Pumps’ strong outlook for the remainder of the fiscal year, driven by its well-rounded strategy of expanding into retail and electric vehicle (EV) sectors. “Our robust order book, combined with a track record of winning new contracts, positions us to exceed market expectations this year. Our advanced manufacturing setup further strengthens our ability to execute current orders efficiently. Simultaneously, we are focused on scaling our retail and EV businesses, which will support sustained financial performance in the long term,” he remarked.
With its strong growth, expanding market share in renewable energy solutions, and continuous innovation in water pump technology, Shakti Pumps is poised to remain a prominent player in India’s green energy initiatives, further supported by government schemes like PM-KUSUM that aim to transform rural irrigation through solar power.
Do you have a news tip for Lakshmishree reporters? Please email us at media@lakshmishree.com
Source: Moneycontrol
