Will excellent results push Shakti Pumps to all-time highs?

Recently, Shakti Pumps (India) Limited has declared its quarterly results for the fourth quarter of FY21. The company witnessed the highest-ever quarterly and yearly profits till date.  

The company has managed to display fantastic performance during the quarter. In Q4 of 2020-21, the total revenue of the company was recorded at Rs 321.11 crore as against Rs 93.78 crore in Q4FY20, which portrays a significant rise. EBITDA in Q4FY21 stood at Rs 51.35 crore, which is the highest-ever to date, as against a loss of Rs 1.41 crore in Q4FY20. The net profit registered was also the highest ever at Rs 30.50 crore, as compared to a Rs 6.15 crore loss in Q4FY20. 

For the year 2020-21, the company had its revenue from operations at Rs 933.43 crore, as compared to Rs 386.91 crore in FY20. Similarly, EBIDTA for FY21 stood at Rs 145.82 crore, as compared to Rs 16.33 crore in FY20. Meanwhile, the company made a net profit of Rs 75.59 crore, as compared to Rs 14.08 crore losses in FY20. 

The key reason that can be linked with the attractive performance of the company can be its robust growth in the domestic solar pumps market. The farmers hardly consider it viable to use the diesel pumps while the electric pumps have their own limitations. In such a case, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan i.e. PM-KUSUM Scheme has displayed great potential and also contributed to the growth during the financial year. 

PM-KUSUM Scheme aims at ensuring energy security for farmers in India, along with honouring India’s commitment to increase the share of installed capacity of electric power from non-fossil-fuel sources to 40 per cent by 2030 as part of Intended Nationally Determined Contributions (INDCs). The company expects more demand to flow in during the current financial year and going forward, as awareness increases among farmers. 

Shakti Pumps India Limited is a manufacturer of submersible pumps for domestic, industrial, horticultural & agricultural use. The company exports to more than 100 countries, with branches in the USA, Australia & UAE. 

On Thursday, the stock was trading at Rs 727.15 and has gained over 13 per cent on BSE.