Shakti Pumps shares hit 5% upper circuit for third straight day after five-fold jump in Q1 revenue

The Shakti Pumps stock was locked at the upper circuit limit of ₹4,516.1 apiece on the NSE. The share price has gained over 15% in the last three sessions after its earnings report was released on Saturday, July 20.

Shakti Pumps reported an over fivefold increase in revenue to ₹567.6 crore in Q1FY25, compared to ₹113.1 crore in Q1FY24.

Profit after tax (PAT) PAT grew multi-fold to ₹92.6 crore during the June quarter from just ₹1 crore a year ago. PAT margins also expanded to 16.3% in Q1FY25 from 0.9% in Q1FY24.

The company’s operating profit, or EBITDA (earnings before interest, tax, depreciation, and amortisation), rose to ₹135.9 crore in the June quarter, compared with ₹7.9 crore in the year-ago quarter. This was largely driven by economies of scale and a higher execution rate, the company said.

Commenting on the earnings, Shakti Pumps chairman Dinesh Patidar said, “This commendable performance is attributable to the accelerated execution of the existing orders in both domestic and export markets. Furthermore, the improvement in margins was achieved due to a decline in raw material prices, coupled with economies of scale resulting from higher execution during the quarter.”

Patidar also informed that the company maintains a healthy order book of approximately ₹2,000 crores as of June 30, 2024, which is expected to be implemented in the next 15 months.

“The recognition by various state governments and electricity boards of the benefits of deploying solar pumps for farmers is anticipated to lead to more orders from the state governments, further bolstering our growth potential,” he added.