Shakti Pumps shares jump 11 percent on bagging Rs 293-crore order win

Shares of Shakti Pumps Ltd jumped 11 percent on September 15 after getting a letter of award worth Rs 293 crore under from Department of Agriculture, Uttar Pradesh for 10,000 pumps. At 10:46 am, shares of the company were trading 11.54 percent higher at Rs 878 on the BSE. The stock has gained 22 percent in a month and 113 percent in the past six months.

“Shakti Pumps (India) Limited has received Letter of Award under PM- KUSUM III scheme under component-B from Department of Agriculture, Uttar Pradesh for 10,000 pumps,” Shakti Pumps India said in a regulatory filing.

“The total amount of the work order is approximately Rs 293 crore, inclusive of GST,” it added.

The order entails the supply, installation, and commissioning of solar water pumping systems.

The order is to be executed within a 90-day timeframe.

Shakti Pumps (India) Ltd is primarily engaged in manufacturing of pumps and motors of various kinds. It also offers advanced water pumping solutions to a wide range of applications such as irrigation, horticulture, domestic water supply, commercial, and industrial applications.

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Q1FY24 financial performance

Shakti Pumps reported consolidated quarterly net sales at Rs 113.06 crore in June 2023, which is down 55.57 percent from Rs. 254.48 crore it registered in June 2022. Quarterly net profit stood at Rs. 1 crore in June 2023, down 88.6 percent year-on-year (YoY).

On the operating front, earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at Rs 8.46 crore in June 2023, down 62.27 percent from Rs. 22.42 crore in June 2022.

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