Shakti Pumps (India) Limited (herein referred to as “SPIL”), a leading manufacturer of energy efficient solar pumps, stainless-steel submersible pumps, pressure booster pumps, pump-motors, controllers, inverters and others in India, has announced the financial results for the fourth quarter and full year ended 31st March, 2022
Shakti Pumps has achieved its highest ever revenue and have crossed Rs 10 billion+ revenue milestone for the first time since inception. This is the result of our team united effort and our emphasis on innovation and technological development. We reported a strong revenue performance in Q4 FY22 backed by significant contribution from government business on account of implementation of the KUSUM scheme.
Sharp rise in raw material cost have impacted the operating margin on a YoY basis which declined by 619 bps to 9.4% in Q4 FY22 as compared to Q4 FY21 levels. The trend remained similar in full year FY22 performance, where the revenue reported an increase of 26.8% YoY and registered all time high of Rs 11,785 million. Inflationary pressures have impacted the operating margin, resulting in lower profitability.
Government focus on renewable energy and specifically in the field of solar power generation with Phase 2 of KUSUM scheme already commenced, remains a key trigger for company’s growth in future. 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.