TYM Financial Updates
TYM Financial Updates

@TYMFinance

9 Tweets 20 reads Jan 23, 2022
Shakti Pumps conducted the conference call for Q2: FY22
"With KUSUM mgmt guides to grow at 30-35% YoY in coming year
Here are the conference call highlights.
Business Updates:
β€’ KUSUM 2 sales has been started and will be seen in Q4.
β€’ Received order book of 100cr in Jan first week.
β€’ With increase in EPC product mix, margins impacted a bit.
β€’ Mgmt expect the Raw Material prices to reduce further.
β€’ Capacity Utilization: 40%
KUSUM:
β€’ Total Market of KUSUM 2: 3,17,000
- Addressable Market: 1,50,000
β€’ Shakti Pump is already present in 22 states, being leader in states such as Haryana, Rajashthan, MP, Maharashtra
β€’ Price Hike done in KUSUM 2: 3-4%.
β€’ Bank Guarantee of 3% has to be given.
Export:
β€’ Co. will explore other country prior to having experience in delivering the pumps in the current market covered.
Margins:
β€’ Mgmt expects margins to increase in coming quarter.
Guidance for margin
- OPM: 12%
- PAT: 8-9%
β€’ From last year, margins got reduce because of initiative in entering KUSUM business. Now RM prices are increased but not prices, hence due to competition margin reduced.
Expansion in EV:
β€’ Opened new co. name Shakti EV pvt ltd.
(EV Controller, EV Motor, DC charger- In focus to manufacture).
β€’ Business will be started with manufacturing of Motor & Controller. Competition: Mainly in Valsad.
β€’ Co. will 250cr in coming 5 years in this subsidiary.
Raw Material:
β€’ For Solar pump, mgmt don't thinks any raw material supply issue from Adani side.
Competition:
β€’ Adani is also entering for solar pumps. However mgmt feels market size is big and addition of 2-3 players will not impact the industry much.
Other:
β€’ For EV business co. has applied for PLI scheme where new facility is created.
β€’ Pumps price is for 2,50,000 for size of 5-10HP pumps (Key focus area of Shakti Pumps)
β€’ Took step for digitizing in pumps selling by starting an app and website for it.
Its for Q3: FY 22*

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