Shakti Pumps (India) Limited (SHAKTIPUMP) Q4 FY23 Earnings Concall Transcript

Shakti Pumps (India) Limited (NSE:SHAKTIPUMP) Q4 FY23 Earnings Concall dated May. 08, 2023.

Corporate Participants:

Rohit Anand — Investor Relations

Dinesh Patidar — Managing Director

Dinesh Patel — Chief Financial Officer

Ramesh Patidar — Executive Director

Analysts:

Kaushal Vora — Latin Manharlal Securities — Analyst

Vishal — Swan — Analyst

Anik Ankit — JHP Securities — Analyst

Hardik Vyas — Economic Times — Analyst

Nitin Gandhi — KIFS Trade Capital Private Limited — Analyst

Forum Makim — Equitree Capital — Analyst

Dipesh Sancheti — Manya Finance — Analyst

Rikesh Parikh — Rockstud Capital LLP — Analyst

Balasubramanian A — Arihant Capital Markets Limited — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Shakti Pumps India Limited Q4 and FY ’23 Earnings Conference Call. [Operator Instructions]

I now hand the conference over to Mr. Rohit Anand from Ernst & Young, LLP. Thank you and over to you Mr Anand.

Rohit Anand — Investor Relations

Thank you, and good afternoon, everyone. Before we proceed, let me remind you that our discussion may contain forward-looking statements that may involve known or unknown risks, uncertainties and other factors. It must be viewed in conjunction with our business risks that could cause future results, performance or achievements to differ significantly from what is expressed or implied by such forward-looking statements.

To take us through the financial results and development and to answer your question today, we have the senior management of Shakti Pumps India Limited represented by Mr. Dinesh Patidar, Managing Director; Mr. Ramesh Patidar, Executive Director – Exports; Mr. Dinesh Patel, Chief Financial Officer; and Mr Ravi Patidar, [Technical Issues] by Mr. Mr. Dinesh Patidar, followed by a Q&A session.

I will now hand over the call to Mr. Patidar. Over to you, sir.

Dinesh Patidar — Managing Director

Thank you, Rohit. [Foreign Speech]

Over to Dinesh.

Dinesh Patel — Chief Financial Officer

Thank you, sir. Revenue from operation in Q4 FY ’23 stood at INR182.7 crore as against INR384.6 crore in the corresponding quarter. Revenue from the export business stood at INR68.9 crores as compared to INR51.5 crores. Registering a strong growth of 34% Y-o-Y EBITDA for Q4 FY ’23 was at INR10.9 crore and EBITDA margin was at 6%. The Company reported a PAT of INR2.2 crore during Q4 FY ’23. During the full-year FY ’23, we recorded a revenue of INR967.7 crore as against INR1,178.5 crores in FY22. The export business continued its growth journey and felt 27% Y-o-Y to INR234.8 crores. [Technical Issues] for FY ’23 was at INR66.6 crores. EBITDA margin at 6.9% and PAT was at INR24.1 crores.

Now I request the moderator to open the floor for question and answer.

Operator

Sir, should we begin the question-and-answer session?

Dinesh Patel — Chief Financial Officer

Yes.

Questions and Answers:

Operator

Thank you. [Operator Instructions] Our first question is from the line of Mr. Kaushal Vora from Latin Manharlal Securities. Please go ahead.

Kaushal Vora — Latin Manharlal Securities — Analyst

Sir, wanted to know more about the Kusum 3.0. As you said, size is 8,57,000 pump. So what is the timeline for that?

Dinesh Patidar — Managing Director

[Foreign Speech]

Kaushal Vora — Latin Manharlal Securities — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Kaushal Vora — Latin Manharlal Securities — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Dinesh Patel — Chief Financial Officer

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Kaushal Vora — Latin Manharlal Securities — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Kaushal Vora — Latin Manharlal Securities — Analyst

So we can expect by July onwards, we can see the Kusum 3.0 starting?

Dinesh Patidar — Managing Director

Sure.

Kaushal Vora — Latin Manharlal Securities — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Kaushal Vora — Latin Manharlal Securities — Analyst

Okay.

Ramesh Patidar — Executive Director

[Foreign Speech]

Kaushal Vora — Latin Manharlal Securities — Analyst

[Foreign Speech]

Ramesh Patidar — Executive Director

[Foreign Speech]

Kaushal Vora — Latin Manharlal Securities — Analyst

Okay. That’s it from my side. Thank you and all the best.

Ramesh Patidar — Executive Director

Thank you.

Dinesh Patidar — Managing Director

Thank you, Vora ji. Thank you.

Operator

Thank you. Our next question is from the line of Mr. Vishal from Swan. Please go ahead.

Vishal — Swan — Analyst

Thank you for taking my question, sir. Sir, just wanted to know the break-up customer-wise, which you’ll give every year.

Dinesh Patidar — Managing Director

[Foreign Speech]

Vishal — Swan — Analyst

Sir, basically customer segment-wise breakup for the year, as well as for the quarter, that will be helpful, sir.

Dinesh Patidar — Managing Director

[Technical Issues]

Vishal — Swan — Analyst

[Foreign Speech] Sir, how do you see now going-forward [Foreign Speech] you will be participating in the tender. So, how fast you expect this ordering process will start and when will this execution start. So can we easily assume [Foreign Speech] majority of the ordering will be in the second-half or second quarter [Foreign Speech] roadmap?

Dinesh Patidar — Managing Director

[Foreign Speech]

Vishal — Swan — Analyst

Okay. Okay. [Foreign Speech] Is this understanding right?

Dinesh Patidar — Managing Director

Right, right, right, right, right. [Foreign Speech]

Vishal — Swan — Analyst

[Foreign Speech] you’re saying, sir, Q2 FY ’24?

Dinesh Patidar — Managing Director

Yeah.

Vishal — Swan — Analyst

Okay. So in terms of [Foreign Speech] in Q1, our performance will be slightly better than Q4, but it will not be significantly better, because [Foreign Speech]?

Dinesh Patidar — Managing Director

Perfectly right. [Foreign Speech]

Vishal — Swan — Analyst

Okay. Fantastic, sir. Thank you so much and all the best, sir.

Dinesh Patidar — Managing Director

Thank you, Vishal. Thank you.

Operator

Thank you. Our next question is from the line of Mr. Anik Ankit from JHP Securities. Please go ahead.

Anik Ankit — JHP Securities — Analyst

Thank you for taking a quick question. So actually I wanted to ask in Kusum scheme II, the Shakti Pumps contribution in total execution is getting reduced quarter-on-quarter. So what’s the reason behind that, because in quarter one, it was 45%, currently in quarter four it is at 24%. Any reason for that?

Dinesh Patidar — Managing Director

[Foreign Speech]

Anik Ankit — JHP Securities — Analyst

Okay. Okay. [Foreign Speech]

Ramesh Patidar — Executive Director

[Foreign Speech]

Anik Ankit — JHP Securities — Analyst

Okay. Quarter four —

Ramesh Patidar — Executive Director

[Foreign Speech]

Anik Ankit — JHP Securities — Analyst

[Foreign Speech]

Ramesh Patidar — Executive Director

[Foreign Speech]

Anik Ankit — JHP Securities — Analyst

Okay. Okay. Thank you. Thank you so much.

Dinesh Patidar — Managing Director

Thank you, Ankit.

Operator

Thank you. Our next question is from the line of Vijay Srivastava from VSF Associates. Please go ahead. Mr. Srivastava, your line has been unmuted. You can go ahead with your question.

As there is no response from the participant’s line, may I request the management that we’ll move to the next question. Our next question is from the line of Hardik Vyas from Economic Times. Please go ahead.

Hardik Vyas — Economic Times — Analyst

Good afternoon, sir. [Foreign Speech] So those rates are going to be the same for all the states or [Foreign Speech]?

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ramesh Patidar — Executive Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Ramesh Patidar — Executive Director

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

Okay. Okay. Sir, last question [Foreign Speech]

Ramesh Patidar — Executive Director

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

Okay. Thank you, sir. All the best.

Dinesh Patidar — Managing Director

Thank, Hardik. Thank you.

Operator

Thank you. Our next question is from the line of Mr. Nitin from KIFS Trade Capital Private Limited. Please go ahead.

Nitin Gandhi — KIFS Trade Capital Private Limited — Analyst

Yeah. Thanks for taking my question. With reference to the current two-year order of 8.6 like pump, what is the market share strategy which we are planning, because some of the states you might be aggressive and some states you might [Technical Issues] So if you can share some thoughts here getting major market share in that.

Dinesh Patidar — Managing Director

[Foreign Speech]

Nitin Gandhi — KIFS Trade Capital Private Limited — Analyst

Thank you. [Foreign Speech] 7%. Can we expect something on mid-double-digit.

Dinesh Patidar — Managing Director

Yes, Nitin. [Foreign Speech]

Nitin Gandhi — KIFS Trade Capital Private Limited — Analyst

All the best, sir. [Foreign Speech]

Dinesh Patidar — Managing Director

Thank you.

Nitin Gandhi — KIFS Trade Capital Private Limited — Analyst

All the best.

Dinesh Patidar — Managing Director

Thank you.

Nitin Gandhi — KIFS Trade Capital Private Limited — Analyst

Thank you. Our next question is from the line of Forum Makim from Equitree Capital. Please go ahead.

Forum Makim — Equitree Capital — Analyst

Hello, sir. Congratulations on being qualified for 21 states. Sir, [Foreign Speech]

Dinesh Patidar — Managing Director

Okay. [Foreign Speech]

Forum Makim — Equitree Capital — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

Yes. [Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Right, sir. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Okay, sir. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Okay, sir. [Foreign Speech] for the next two years?

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Right, right, sir. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Okay, sir. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Right, sir. Sir, just two more questions, sir. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Okay, sir. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Okay, sir. Okay. Thank you so much, sir.

Dinesh Patidar — Managing Director

Thank you.

Operator

Thank you. Our next question is from the line of Dipesh Sancheti from Manya Finance. Please go ahead.

Dipesh Sancheti — Manya Finance — Analyst

Yes, sir. Sir, first thing, though, what is our capacity and [Foreign Speech] in India, as well as Uganda?

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

[Foreign Speech] our company generally does — has a market share of 30% to 35%. Can we do any thousand crores in the next few years?

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

Because, this entire order [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital — Analyst

Sir, just to understand, sir, [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

Okay, sir. Okay.

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

Okay. Okay. And what is the current order book, sir?

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

Okay. [Foreign Speech] after the ramp-up?

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

[Foreign Speech] will we maintain the same debt or we will ramp-up, because we will need more capacity utilization?

Dinesh Patel — Chief Financial Officer

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

[Foreign Speech] I completely understand that the loan is not big enough, but [Foreign Speech] because of higher capacity utilization.

Dinesh Patel — Chief Financial Officer

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

[Foreign Speech] how does the payment happen?

Dinesh Patidar — Managing Director

[Foreign Speech]

Dipesh Sancheti — Manya Finance — Analyst

Great. Great, sir. Thank you so much, sir, and all the very best. I hope you will definitely achieve your double-digit margins and more so I think INR8,000 crores [Foreign Speech]

Dinesh Patidar — Managing Director

Yes, yes, definitely.

Dipesh Sancheti — Manya Finance — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

Thank you. Thank you.

Operator

Thank you. Our next question is from the line of Rikesh Parikh from Rockstud Capital LLP. Please go ahead.

Rikesh Parikh — Rockstud Capital LLP — Analyst

Thanks for the opportunity. Sir, [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rikesh Parikh — Rockstud Capital LLP — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rikesh Parikh — Rockstud Capital LLP — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rikesh Parikh — Rockstud Capital LLP — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rikesh Parikh — Rockstud Capital LLP — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rikesh Parikh — Rockstud Capital LLP — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rikesh Parikh — Rockstud Capital LLP — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

Perfectly right. [Foreign Speech]

Rikesh Parikh — Rockstud Capital LLP — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rikesh Parikh — Rockstud Capital LLP — Analyst

Okay. Thanks. That’s it from my side.

Dinesh Patidar — Managing Director

Thank you. Thank you.

Operator

Thank you. Our next question is from the line of Balasubramanian from Arihant Capital Markets Limited. Please go ahead.

Balasubramanian A — Arihant Capital Markets Limited — Analyst

Hello?

Dinesh Patidar — Managing Director

Yes.

Balasubramanian A — Arihant Capital Markets Limited — Analyst

Yeah. Sir, just wanted a confirmation on the payment cycle that you mentioned 90% of the payment is received in 30 days or 90 days [Foreign Speech]

Dinesh Patidar — Managing Director

Sure. Sure. [Foreign Speech] 90% within 30 days and 10% within 90 days.

Balasubramanian A — Arihant Capital Markets Limited — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Balasubramanian A — Arihant Capital Markets Limited — Analyst

Okay. Okay. Understood.

Dinesh Patidar — Managing Director

[Foreign Speech]

Balasubramanian A — Arihant Capital Markets Limited — Analyst

Okay. Understood. Understood.

Dinesh Patidar — Managing Director

[Foreign Speech]

Balasubramanian A — Arihant Capital Markets Limited — Analyst

Understood. Understood. Thank you so much for the clarification, sir.

Dinesh Patidar — Managing Director

Thank you. Thank you. Thank you.

Operator

Thank you. Due to time constraints, that was the last question of our question-and-answer session. I would now like to hand the conference over to Mr. Dinesh Patidar for closing comments.

Dinesh Patidar — Managing Director

Thank you. [Foreign Speech]

Operator

[Operator Closing Remarks]