Shakti Pumps (India)‘s net profit in the March quarter was down 28 per cent at ₹22 crore (against ₹30 crore in the same period last year) largely due to higher operational cost.

Revenue in the quarter under review was up 20 per cent at ₹385 crore (₹320 crore). However, earnings before income tax, depreciation and amortisation was down 27 per cent at ₹36 crore (₹50 crore) as margin dipped 6.19 per cent to 9.4 per cent.

Dinesh Patidar, Chairman and Managing Director, Shakti Pumps, said the strong revenue growth was backed by significant contribution from government business on account of implementation of the KUSUM scheme. However, he said inflationary pressures have impacted the operating margin, resulting in lower profitability.

The companyachieved highest-ever revenue of ₹1,178 crore (₹930 crore), registering a growth of 27 per cent in the financial year ended March even while the net profit was down 14 per cent at ₹65 crore (₹76 crore).

Govt focus

The main trigger for the next phase of growth, he said would be led by the Government focus on renewable energy and specifically in the field of solar power generation with Phase 2 of KUSUM scheme which has already started.

“We believe improved traction in export business and increasing contribution of retail business coupled with strong emphasis on technological advancement and acceptance of new products (like automatic structure, Universal Solar Pump Controller and Small Structure Pumps) will enable the company to report steady revenue growth and consistent operating margin going forward,” he added.

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