Shakti Pumps (India) Ltd (SHAKTIPUMP) Q1 2023 Earnings Call Transcript

Shakti Pumps (India) Ltd  ( NSE : SHAKTIPUMP)Q1 2023 Earnings Call dated Jul. 15, 2022.

Corporate Participants:

Dinesh Patidar — Managing Director

Dinesh Patel — Chief Financial Officer

Analysts:

Rohit Anand — Ernst and Young LLP — Analyst

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

Ankit Shah — JHP Securities Private Limited — Analyst

Forum Makim — Equitree Capital Advisors — Analyst

Ramesh Patidar — Executive Director, Exports

Hardik Vyas — Economic Times — Analyst

Ajay Jain — Investor — Analyst

Sanjay Kumar — ithoughtPMS — Analyst

Anurag Patil — Roha Asset Managers — Analyst

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

Akshay Kothari — Envision Capital Services Private Limited — Analyst

Rahul — BR Investment Group — Analyst

Keshav Kumar — RakSan Investors — Analyst

Sunil Ahuja — S Ahuja Consultant — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Shakti Pumps (India) Limited Q1 FY ’23 Earnings Conference Call. [Operator Instructions]

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

Rohit Anand — Ernst and Young LLP — Analyst

Thank you, and good afternoon, everyone. Before we proceed, let me remind you that the 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 businesses 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 developments 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, CS and Compliance Officer.

We will start the call with a brief overview of the past quarter, and Mr. Dinesh Patidar, followed by a Q&A session. I will hand over the call to Mr. Patidar. Over to you, sir.

Dinesh Patidar — Managing Director

Thank you, Rohit. [Foreign Speech].

Over to Dinesh Patel.

Dinesh Patel — Chief Financial Officer

Thank you, sir. Good afternoon, everyone. Moving on to the financial highlights. The company reported a consolidated revenue of INR255 crore in Q1 FY ’23, a 62.8% Y-o-Y growth as compared to INR156 crore in Q1 FY ’22. EBITDA at INR21 crore was up by 69.2% year-on-year basis as against INR13 crore in Q1 FY ’22. EBITDA margin was at 8.4% during the quarter. Going forward, margins are expected to improve on account of increase in export and retail revenue contribution in the overall revenue mix. Softening of raw material prices will also add in margin improvement. EBITDA grew by 81% Y-o-Y to INR12 crore from INR7 crores in Q1 FY ’22. PAT [Phonetic] for the year was at INR9 crore as compared to INR7 crores in Q1 FY ’22 and 19.8% Y-o-Y growth. The PAT growth during the quarter was muted on account of negative tax expense due to tax reversal in Q1 FY ’22. This is all from my side.

With this, we can now open the floor to question-and-answer session.

Questions and Answers:

Operator

Thank you. Ladies and gentlemen, we will now begin with the question-and-answer session. [Operator Instructions] The first question is from the line of Nirav Ashar from LM Securities. Please go ahead.

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

Good afternoon, sir. Congratulation on good set of numbers. I have two major questions. First is on the demand side for KUSUM 2.0, how is the demand currently, and whether we can meet up the demand, which we have?

Dinesh Patidar — Managing Director

Yes. KUSUM, it’s been very clear. [Foreign Speech]

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

Sir, order book [Foreign Speech]?

Dinesh Patidar — Managing Director

[Foreign Speech]

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

And we are getting good orders from the nearby states Rajasthan, MP?

Dinesh Patidar — Managing Director

Yes. Rajasthan, MP, Haryana, Punjab, Maharashtra.

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

And now since the metal prices have gone down, the supply side margin pressure [Foreign Speech] going ahead? What do you think?

Dinesh Patidar — Managing Director

Yes, yes. [Foreign Speech]

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

So what margins can we expect going ahead maybe for the full year?

Dinesh Patidar — Managing Director

Yes, [Foreign Speech]

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

Okay. Sir, [Foreign Speech] question. Is there any issue related to the payment from the state and central government? As I can see that interest percentage has gone up in this quarter.

Dinesh Patidar — Managing Director

Yes. Because see [Foreign Speech]

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

Okay. And sir, can you please tell us about the solar panel prices, how it is right now, whether it is gone down or not?

Dinesh Patidar — Managing Director

Solar panel [Foreign Speech]

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

Okay. And what is the revenue and margin guidance for the full year?

Dinesh Patidar — Managing Director

[Foreign Speech]

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

And revenue growth, what can we — yeah.

Dinesh Patidar — Managing Director

Yes. Revenue [Foreign Speech]

Nirav Ashar — Latin Manharlal Securities Private Limited — Analyst

Okay, okay. That’s it from my side. All the best, sir.

Dinesh Patidar — Managing Director

Thank you, thank you.

Operator

Thank you. The next question is from the line of Ankit Shah from JHP Securities Private Limited. Please go ahead. Ankit, your line is unmuted. Please go ahead.

Ankit Shah — JHP Securities Private Limited — Analyst

Hello, am I audible now?

Operator

Yes, sir. Please proceed.

Ankit Shah — JHP Securities Private Limited — Analyst

Yeah. Thank you for taking up my question. I have couple of questions. [Technical Issues] and 3,70,000 pumps, but the execution level is quite low. Any reason for the delay in execution under both the schemes?

Dinesh Patidar — Managing Director

Yes. [Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

Sorry, I didn’t get your last point. Hello?

Dinesh Patidar — Managing Director

[Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

Okay. KUSUM 2 [Foreign Speech]15,000 [Foreign Speech], okay. Okay. And my second question is in the state of Rajasthan, Gujarat, and MP, farmers share in KUSUM scheme is quite high as compared to other state. So how is the demand scenario in such states? And are farmers ready to pay that much share?

Dinesh Patidar — Managing Director

Ankit, farmers share [Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

Okay. Issue [Foreign Speech]. Okay. Third question [Foreign Speech] margin related. [Foreign Speech] Gross margin [Foreign Speech] 3.5%. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

Okay. [Foreign Speech] KUSUM 2 scheme [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

KUSUM 2 scheme [Foreign Speech]

Dinesh Patidar — Managing Director

KUSUM 2 [Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

Yes, yes, yes.

Ankit Shah — JHP Securities Private Limited — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

Hello? [Foreign Speech], hello?

Dinesh Patidar — Managing Director

[Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

Okay. [Foreign Speech] state government or central government [Foreign Speech] KUSUM scheme [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ankit Shah — JHP Securities Private Limited — Analyst

Okay. [Foreign Speech] Okay. Thank you. Thank you so much, sir.

Dinesh Patidar — Managing Director

Thank you, Ankit.

Operator

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

Forum Makim — Equitree Capital Advisors — Analyst

Hello?

Dinesh Patidar — Managing Director

Yes.

Forum Makim — Equitree Capital Advisors — Analyst

Hello, sir. Sir, in the previous quarter [Foreign Speech] 9,000 pumps [Foreign Speech] what is the reason for that?

Dinesh Patidar — Managing Director

[Foreign Speech] 6,000 pumps installed. [Foreign Speech] Total KUSUM 2 [Foreign Speech] KUSUM 2 [Foreign Speech] total installation [Foreign Speech] 32,757 [Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Right. So sir, what is the reason [Foreign Speech] slow implementation [Foreign Speech].

Dinesh Patidar — Managing Director

Yes, yes, [Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Sir, [Foreign Speech] timeline [Foreign Speech] installation [Foreign Speech]?

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

Yes, yes. [Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

[Foreign Speech] next quarter [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

Yes. [Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Okay. So sir, [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Okay, sir. [Foreign Speech] What is the visibility? What is the conviction that we have? Already implementation [Foreign Speech]? So next year, ’24, ’25 [Foreign Speech]?

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Sir, sorry, [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Okay, sir. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] Export Director, Ramesh Kumar [Foreign Speech]

Ramesh Patidar — Executive Director, Exports

[Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Sir, how many prices — device [Phonetic] prices [Foreign Speech]

Ramesh Patidar — Executive Director, Exports

Sorry?

Dinesh Patidar — Managing Director

[Foreign Speech]

Forum Makim — Equitree Capital Advisors — Analyst

Okay, sir. Thank you so much.

Dinesh Patidar — Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Hardik Vyas from Economic Times. Please go ahead.

Hardik Vyas — Economic Times — Analyst

Sir, [Foreign Speech]

Operator

Sorry to interrupt Mr. Vyas. We’re not able to hear you clearly. Your audio is running very soft.

Hardik Vyas — Economic Times — Analyst

Hello, can you hear me now?

Operator

No, sir. It is still sounding soft.

Hardik Vyas — Economic Times — Analyst

Can you hear me now?

Operator

No sir, I’ll request if you use the handset mode while speaking and on the speaker phone.

Hardik Vyas — Economic Times — Analyst

Hello, can you hear me now?

Operator

Sir, it’s still sounding very soft.

Hardik Vyas — Economic Times — Analyst

Hello?

Operator

Sir, please proceed.

Hardik Vyas — Economic Times — Analyst

Can you hear me now?

Operator

Yeah. Much better. Thank you.

Hardik Vyas — Economic Times — Analyst

Yeah. I wanted to ask, sir, [Foreign Speech]

Dinesh Patidar — Managing Director

INR175 crores.

Hardik Vyas — Economic Times — Analyst

INR175 crores, [Foreign Speech]

Dinesh Patidar — Managing Director

Right.

Hardik Vyas — Economic Times — Analyst

[Foreign Speech] that is non-solar domestic business that we have.

Dinesh Patidar — Managing Director

Yes, you can say like that. It’s [Foreign Speech].

Hardik Vyas — Economic Times — Analyst

[Foreign Speech] last quarter.

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

Rajasthan [Foreign Speech] tenders or orders [Foreign Speech].

Dinesh Patidar — Managing Director

Right

Hardik Vyas — Economic Times — Analyst

[Foreign Speech] 50% roughly.

Dinesh Patidar — Managing Director

[Foreign Speech] 46% of our market share [Foreign Speech]

Hardik Vyas — Economic Times — Analyst

Okay. So, [Foreign Speech] remaining three quarters [Foreign Speech] what is the guidance in the number of pumps that are likely to be installed? In the last quarter [Foreign Speech]

Dinesh Patidar — Managing Director

Yes, yes, yes. [Foreign Speech] 46% market share [Foreign Speech]

Hardik Vyas — Economic Times — Analyst

Okay. Sir, exports [Foreign Speech] apart from Africa [Foreign Speech] what it likely to be the run rate in June quarter [Foreign Speech]?

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

Okay. [Foreign Speech]

Dinesh Patidar — Managing Director

Right, right, right.

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Hardik Vyas — Economic Times — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

Yes.

Hardik Vyas — Economic Times — Analyst

[Foreign Speech] Our solar panel prices, sir [Foreign Speech] 20, say 24 [Foreign Speech] last quarter [Foreign Speech] those prices are at 24 only [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] Thank you so much. That’s all from my side and all the best.

Dinesh Patidar — Managing Director

Thank you, Hardik. Thank you. Thank you very much.

Operator

Thank you. The next question is from the line of Ajay Jain an Investor. Please go ahead.

Ajay Jain — Investor — Analyst

Hello, [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ajay Jain — Investor — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ajay Jain — Investor — Analyst

[Foreign Speech] Economic Times [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] Economic Times [Foreign Speech]

Ajay Jain — Investor — Analyst

[Foreign Speech] 25%, 30% growth [Foreign Speech] without mentioning the numbers. [Foreign Speech] business plan [Foreign Speech] expect [Foreign Speech] or is that some firm business plan or is just a [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] business plan, [Foreign Speech]

Ajay Jain — Investor — Analyst

[Foreign Speech] number of pumps [Foreign Speech] current year, [Foreign Speech] next year, [Foreign Speech] KUSUM, especially, KUSUM [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ajay Jain — Investor — Analyst

[Foreign Speech] Because we as investor want to know [Foreign Speech]. Basically, this company [Foreign Speech]. We are also basing our foresight and forecast on KUSUM. So [Foreign Speech] KUSUM scheme [Foreign Speech]

Dinesh Patidar — Managing Director

Definitely, [Foreign Speech]

Ajay Jain — Investor — Analyst

[Foreign Speech] investor.

Dinesh Patidar — Managing Director

[Foreign Speech]

Ajay Jain — Investor — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ajay Jain — Investor — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] definitely, [Foreign Speech]

Ajay Jain — Investor — Analyst

But [Foreign Speech] expectation [Foreign Speech] current year?

Dinesh Patidar — Managing Director

[Foreign Speech]

Ajay Jain — Investor — Analyst

Sir, in addition, [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] I agree [Foreign Speech] in terms of percentage. [Foreign Speech] Government of India [Foreign Speech] those are all issues, which have to be addressed by the company. Am I right?

Ajay Jain — Investor — Analyst

Yes, right, right. [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Ajay Jain — Investor — Analyst

Okay, thank you.

Dinesh Patidar — Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Sanjay Kumar from ithoughtPMS. Please go ahead.

Sanjay Kumar — ithoughtPMS — Analyst

Hello?

Dinesh Patidar — Managing Director

Hi, Sanjay. [Foreign Speech]

Sanjay Kumar — ithoughtPMS — Analyst

Hi, sir. Just an extension to the previous question, say we have 5,00,000 pump [Indecipherable] capacity. [Foreign Speech we had — I think we had given an order to KSB either last quarter or the previous quarter. Are we outsourcing some of the pumps to KSB? Can you give the number for this quarter, and will it continue?

Dinesh Patidar — Managing Director

[Foreign Speech]

Sanjay Kumar — ithoughtPMS — Analyst

KSB [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Sanjay Kumar — ithoughtPMS — Analyst

I think around INR5 crore of order was from Shakti Pumps.

Dinesh Patidar — Managing Director

This is 100% lie. [Foreign Speech]

Sanjay Kumar — ithoughtPMS — Analyst

Okay.

Dinesh Patidar — Managing Director

[Foreign Speech]

Sanjay Kumar — ithoughtPMS — Analyst

Okay, sir. And just another question for tracking. Where do we buy our panels for supplier?

Dinesh Patidar — Managing Director

Yes, [Foreign Speech] domestic sales manufacturer [Foreign Speech]

Sanjay Kumar — ithoughtPMS — Analyst

Okay. Okay, sir. Thank you.

Dinesh Patidar — Managing Director

Thank you. Thank you, Sanjay.

Operator

Thank you. We’ll move on to the next question that is from the line of Anurag Patil from Roha Asset Managers. Please go ahead.

Anurag Patil — Roha Asset Managers — Analyst

Thank you for the opportunity. Sir, in Q1 [Foreign Speech] total debt [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] working capital requirement [Foreign Speech] Dinesh, [Foreign Speech]

Dinesh Patel — Chief Financial Officer

Sir, [Foreign Speech] term loan [Foreign Speech] INR14.5 crores, sir. [Foreign Speech] working capital utilization [Foreign Speech] INR226 crores.

Anurag Patil — Roha Asset Managers — Analyst

INR226 crores. So [Foreign Speech] around INR102 crore [Foreign Speech] Q4 end, basically, right, total debt. [Foreign Speech] including working capital. Am I correct in saying?

Dinesh Patidar — Managing Director

[Foreign Speech] because of raw material capability [Foreign Speech]

Anurag Patil — Roha Asset Managers — Analyst

Total net working capital [Foreign Speech] annual basis [Foreign Speech]?

Dinesh Patidar — Managing Director

[Foreign Speech]

Anurag Patil — Roha Asset Managers — Analyst

Okay. [Foreign Speech] annually maintain [Foreign Speech]. Okay. And sir, [Foreign Speech]

Dinesh Patidar — Managing Director

Yeah. [Foreign Speech]

Anurag Patil — Roha Asset Managers — Analyst

Okay. [Foreign Speech] global or local [Foreign Speech] differentiating factor [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Anurag Patil — Roha Asset Managers — Analyst

Okay, sir. [Foreign Speech] That’s it from my side. Thank you.

Dinesh Patidar — Managing Director

Thank you. Thank you very much.

Operator

Thank you. The next question is from the line of Senthil Kumar from Joindre Capital Services Private Limited. Please go ahead.

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

Hello? Am I audible?

Dinesh Patidar — Managing Director

Yes.

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

Thanks for the opportunity. I just want to know what is the debtor [Phonetic] beyond six months as a percentage of total receivables?

Dinesh Patidar — Managing Director

[Foreign Speech]

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

Sorry. Sorry, I don’t know Hindi.

Dinesh Patidar — Managing Director

Question repeat, [Foreign Speech]

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

I just want to know debtor beyond six months as a percentage of receivables.

Dinesh Patidar — Managing Director

Debtor beyond six months [Foreign Speech]

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

Hello?

Dinesh Patidar — Managing Director

[Foreign Speech] right?

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

Okay, sir, okay. And I have another question. So the revenue mix — revenue in the presentation, the contribution has decreased from 20 percentage in FY ’18 to just three percentage in FY ’22. Can I have the reason for that? OEM contribution.

Dinesh Patidar — Managing Director

Can you please repeat your question again?

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

There was — in the revenue contribution, the OEM customers contribution, it was 20 percentage in FY ’18, it was decreased to 3% in FY ’22. What is the reason? Do we missed any claims in that?

Dinesh Patidar — Managing Director

From which, from which segment you are asking?

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

No. I’m asking from the presentation you have given in the Slide number 9.

Dinesh Patidar — Managing Director

OEM contribution?

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

Yes. OEMs customers’ contribution, revenue contribution. It has decreased to 2.63 [Phonetic] percentage.

Dinesh Patidar — Managing Director

Yes, perfectly right, 20% to 3%. This is OEM business. Strategically, we have decided to not sell OEM. We are doing directly EPC project in [Indecipherable]. So this is company policy. We have decided to not sell its OEM business, right?

Senthil Kumar — Joindre Capital Services Private Limited — Analyst

Okay, sir. Thank you. That’s it from my side.

Dinesh Patidar — Managing Director

Thank you.

Operator

Thank you. The next question is from the line of Akshay Kothari from Envision Capital. Please go ahead.

Akshay Kothari — Envision Capital Services Private Limited — Analyst

Yeah. Thanks for the opportunity. Sir, [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] 30%, 35% subsidy [Foreign Speech] state minimum 30% [Foreign Speech].

Akshay Kothari — Envision Capital Services Private Limited — Analyst

Okay. Thank you, and all the best.

Dinesh Patidar — Managing Director

Thank you, Akshay. Thank you.

Operator

Thank you. The next question is from the line of Rahul Ji [Phonetic] from BR Investments. Please go ahead.

Rahul — BR Investment Group — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rahul — BR Investment Group — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rahul — BR Investment Group — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rahul — BR Investment Group — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Rahul — BR Investment Group — Analyst

Okay. Thank you, sir.

Dinesh Patidar — Managing Director

Thank you, Rahul Ji. Thanks.

Operator

Thank you. The next question is from the line of Keshav from RakSan Investors. Please go ahead. Keshav, your line is unmute, please go ahead.

Keshav Kumar — RakSan Investors — Analyst

Hello. Am I audible?

Operator

Yes, sir, please proceed.

Keshav Kumar — RakSan Investors — Analyst

Yeah. So the INR200 crore order book [Foreign Speech]?

Dinesh Patidar — Managing Director

This is only KUSUM order book.

Keshav Kumar — RakSan Investors — Analyst

Okay. Sir. Okay. And so, sir, [Foreign Speech] entirely KUSUM [Foreign Speech] non-KUSUM business [Foreign Speech]

Dinesh Patidar — Managing Director

100% KUSUM. 100% KUSUM.

Keshav Kumar — RakSan Investors — Analyst

So, sir, INR175 cr 6,000 pumps [Foreign Speech] roughly realization [Foreign Speech] INR2.9 lakhs and INR200 crores for 9,000 pumps, the realization comes down to INR2.2 lakhs. So difference [Foreign Speech] product mix [Foreign Speech]

Dinesh Patidar — Managing Director

Keshav, [Foreign Speech]

Keshav Kumar — RakSan Investors — Analyst

[Foreign Speech] Middle Eastern Market used to be very big, or [Foreign Speech] we are seeing resurgence of crude [Foreign Speech]. The prices are coming down, but structurally if the global economy stays stable, we don’t have any supply side indication [Foreign Speech] crude price [Foreign Speech].

Dinesh Patidar — Managing Director

Export business [Foreign Speech] yes, I’m focus [Foreign Speech]

Keshav Kumar — RakSan Investors — Analyst

[Foreign Speech] positive impact other states [Foreign Speech] if the crude — if crude does well their economy depends on it, those states sponsored [Foreign Speech]. They also go for more solarization [Foreign Speech] going forward. Are we looking in that direction [Foreign Speech] Middle East market [Foreign Speech]

Dinesh Patidar — Managing Director

Yes, yes, right. [Foreign Speech]

Keshav Kumar — RakSan Investors — Analyst

Okay, sir. Sir, last question. [Foreign Speech] installation monsoon or non-monsoon months [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Keshav Kumar — RakSan Investors — Analyst

Okay. [Foreign Speech] Thanks a lot, sir. All the best.

Dinesh Patidar — Managing Director

Thank you, thank you.

Operator

Thank you. The next question is from the line of Sunil Ahuja from S Ahuja [Phonetic] Consultant. Please go ahead.

Sunil Ahuja — S Ahuja Consultant — Analyst

Good evening.

Dinesh Patidar — Managing Director

Hi, sir.

Sunil Ahuja — S Ahuja Consultant — Analyst

[Foreign Speech] 25%, 30% [Foreign Speech] sequential growth [Foreign Speech] year-on-year growth?

Dinesh Patidar — Managing Director

Year-on-year growth [Foreign Speech].

Sunil Ahuja — S Ahuja Consultant — Analyst

So year-on-year growth [Foreign Speech], you are not expecting a good growth. [Foreign Speech] All the quarters will be almost muted, like [Foreign Speech].

Dinesh Patidar — Managing Director

[Foreign Speech]

Sunil Ahuja — S Ahuja Consultant — Analyst

[Foreign Speech]

Operator

Sorry to interrupt, sir. The lines of the management has got disconnected. Please stay connected while we reconnect the management team.

Sunil Ahuja — S Ahuja Consultant — Analyst

Okay.

Operator

Ladies and gentlemen, thank you for patiently holding. We now have the lines of the management reconnected. Over to you, sir.

Sunil Ahuja — S Ahuja Consultant — Analyst

Yes. So, [Foreign Speech]

Dinesh Patidar — Managing Director

Right.

Sunil Ahuja — S Ahuja Consultant — Analyst

[Foreign Speech] So that means the whole year the other three quarters will be muted. [Foreign Speech]

Dinesh Patidar — Managing Director

Right, right, right, right.

Sunil Ahuja — S Ahuja Consultant — Analyst

It’s not — whatever you are saying it’s not adding up. That is the problem you know I’m facing, because I have to check through my people who are investing on my words.

Dinesh Patidar — Managing Director

[Foreign Speech]

Sunil Ahuja — S Ahuja Consultant — Analyst

[Foreign Speech] year-on-year. If it’s sequential growth [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech]

Sunil Ahuja — S Ahuja Consultant — Analyst

Sir, I’m not doubting. Sir, I’m not doubting. You are a very big company. I’m not saying about that. [Foreign Speech] 25%, 30%.

Dinesh Patidar — Managing Director

Right.

Sunil Ahuja — S Ahuja Consultant — Analyst

Whether it is sequential growth [Foreign Speech] quarter-on-quarter [Foreign Speech] last quarter [Foreign Speech] in March quarter. So sequential growth [Foreign Speech] 30% [Foreign Speech] or suppose online [Foreign Speech] then the figure will come out different. [Foreign Speech] sequential growth 30% [Foreign Speech] then it is a different figure, total yearly figures. But if you are talking about the year-on-year figures, then it is not adding up, whatever you are saying [Foreign Speech] three quarters up [Foreign Speech]. Suppose you are going to give an annual 25% to 30% growth, so [Foreign Speech] 25%, 30% growth [Foreign Speech] That is my question. My question is, if it is on year-on-year growth [Foreign Speech] which happened only at the highest price of the raw material, the margin [Foreign Speech] am I clear to you?

Dinesh Patidar — Managing Director

Sir, [Foreign Speech]

Sunil Ahuja — S Ahuja Consultant — Analyst

[Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] INR150 crore quarter [Foreign Speech] Last year, [Foreign Speech] record breaking, [Foreign Speech] plus 30% year-on-year basis, [Foreign Speech].

Sunil Ahuja — S Ahuja Consultant — Analyst

Mainly [Foreign Speech]

Dinesh Patidar — Managing Director

[Foreign Speech] growth committed [Foreign Speech]

Sunil Ahuja — S Ahuja Consultant — Analyst

[Foreign Speech] I’m not doubting. I’m not doubting. [Foreign Speech] If you’re under pressure, want to tell the truth that’s a different issue. [Foreign Speech] My question is to be — as a investor and as an consultant to some people, I want to know [Foreign Speech] end of the year [Foreign Speech] sequential growth [Foreign Speech] 30% [Foreign Speech] suppose second quarter [Foreign Speech]

Dinesh Patidar — Managing Director

Yeah, Sunil [Foreign Speech]. Thank you.

Sunil Ahuja — S Ahuja Consultant — Analyst

Okay.

Operator

Thank you. Ladies and gentlemen, that is the last question. I now hand the conference over to Mr. Dinesh Patidar for his closing comments.

Dinesh Patidar — Managing Director

Thank you very much. [Foreign Speech]. Thanks. Thank you very much.

Operator

[Operator Closing Remarks]

Duration: ?? minutes