Technology
Business
Finance
Financial Performance
Sales and Marketing
Market Expansion
Business Updates
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.
"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%
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.
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.
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.
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.
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.
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.
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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