A leading manufacturer of energy-efficient pumping solutions, renowned for innovative water management systems, has announced record-breaking financial results. This article delves into the company’s stellar FY25 performance, highlighting an 83.5% revenue surge and a 187.3% profit leap, alongside improved operational efficiency reflected by reduced receivable days.
Shakti Pumps (India) Limited’s stock, with a market capitalisation of Rs. 10,710 crores, rose to Rs. 920, hitting an intraday high of 4.7 percent from its previous closing price of Rs. 878.40. Furthermore, the stock over the past year has given a return of 135 percent.
Management Commentary
“Our financial prudence is reflected in our ability to reduce receivable days significantly in FY25, despite higher revenues. The receivable days have come down to 152 days from over 178 days in FY24, and we are optimistic that this trend will continue to improve in the coming years. The export business continues to demonstrate strong performance, growing by 52.7% in FY25 to Rs. 4,368 Mn. Our strong position in regions such as USA, Africa, Asia, and the Middle East ensures that this business remains stable and sustainable.
Our healthy order book of Rs. 16,546 Mn and steady order inflow instil confidence in our ability to achieve robust growth in FY26 and beyond. In addition to our current order book and ongoing inflows from states like Maharashtra, Rajasthan, and Haryana, we have actively bid for orders in various other states, including Madhya Pradesh and Punjab. We are confident that our strong presence and market share in these states will enable us to secure significant new orders.” said Chairman Mr. Dinesh Patidar.
Financial Highlight
In Q4FY25, the company reported revenue of Rs. 665 crore, up 9.2% YoY from Rs. 609 crore in Q4FY24 and 2.5% QoQ from Rs. 649 crore in Q3FY25. Net profit stood at Rs. 110 crore, marking a 22.2% YoY increase from Rs. 90 crore and a 5.8% QoQ rise from Rs. 104 crore, reflecting consistent growth in both topline and bottomline performance.
On a yearly basis, the company reported a strong performance with FY25 revenue rising to Rs. 2,516 crore, up 83.5% from Rs. 1,371 crore in FY24. Profit for FY25 stood at Rs. 408 crore, marking a 187% year-on-year increase compared to Rs. 142 crore in FY24, reflecting robust growth and improved operational efficiency.
The company boasts a robust 3-year profit CAGR of 85 percent and ROE CAGR of 29 percent, with low debt-to-equity of 0.14 and a price-to-earnings ratio of 26, well below the industry average of 42, highlighting strong growth at a relative valuation discount.
Written By Fazal Ul Vahab C H
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