Shakti Pumps shows stellar performance in Q2FY19, stock soars

Shakti Pumps reported a good set of numbers in the second quarters of the fiscal year 2018-19.
Shakti Pumps consolidated revenue for the quarter came in at Rs. 138.72 crore, registering 104.9 per cent yoy increase. This was primarily due to a stellar performance in the domestic and international market. Revenue from domestic division almost doubled and revenue from UAE (FZE) also recorded more than 130 per cent yoy growth.

EBITDA for the quarter rose by 92.1 per cent yoy to Rs. 20.88 crore with a corresponding margin contraction of 100 bps. EBITDA margin for the quarter stood at 15.1 per cent. This margin contraction was led by an increase in the cost of raw material in proportion to revenue.

The PAT for the quarter came in at Rs. 9.27 crore, yoy increase of 208 per cent. This was due to a lower effective tax rate in the quarter as compared to the corresponding quarter of last year. 
  
With these strong numbers, the stock of Shakti Pumps surged almost 13 per cent in the early morning and touched an intra-day high of Rs. 474.6 per share. At 10.12 hours, the stock was trading at Rs. 457.5 apiece, up by almost 9 per cent.