SHAKTI PUMPS 2023-24 Annual Report Analysis

Thu, 26 Sep

SHAKTI PUMPS has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

SHAKTI PUMPS Income Statement Analysis

• Operating income during the year rose 41.7% on a year-on-year (YoY) basis.
• The company's operating profit increased by 237.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 16.4% in FY24 as against 6.9% in FY23.
• Depreciation charges increased by 3.4% and finance costs increased by 1.6% YoY, respectively.
• Other income grew by 9.5% YoY.
• Net profit for the year grew by 487.2% YoY.
• Net profit margins during the year grew from 2.5% in FY23 to 10.3% in FY24.

SHAKTI PUMPS Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	9,677	13,707	41.7%
Other income	Rs m	33	36	9.5%
Total Revenues	Rs m	9,709	13,743	41.5%
Gross profit	Rs m	666	2,248	237.8%
Depreciation	Rs m	184	190	3.4%
Interest	Rs m	192	195	1.6%
Profit before tax	Rs m	322	1,899	488.8%
Tax	Rs m	81	482	493.6%
Profit after tax	Rs m	241	1,417	487.2%
Gross profit margin	%	6.9	16.4
Effective tax rate	%	25.2	25.4
Net profit margin	%	2.5	10.3

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SHAKTI PUMPS Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 7 billion as compared to Rs 3 billion in FY23, thereby witnessing an increase of 135.9%.
• Current assets rose 122% and stood at Rs 12 billion, while fixed assets rose 26% and stood at Rs 2 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 15 billion as against Rs 7 billion during FY23, thereby witnessing a growth of 100%.

SHAKTI PUMPS Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,181	7,557	80.8
Current Liabilities	Rs m	2,903	6,848	135.9
Long-term Debt	Rs m	24	0	-100.0
Total Liabilities	Rs m	7,253	14,503	99.9
Current assets	Rs m	5,620	12,450	121.5
Fixed Assets	Rs m	1,628	2,045	25.6
Total Assets	Rs m	7,253	14,503	99.9

SHAKTI PUMPS Cash Flow Statement Analysis

• SHAKTI PUMPS's cash flow from operating activities (CFO) during FY24 stood at Rs 544 million, an improvement of 40.6% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -668 million, an improvement of 455.9% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 2 billion, an improvement of 510% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -202 million net cash flows seen during FY23.

SHAKTI PUMPS Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	387	544	40.6%
Cash Flow from Investing Activities	Rs m	-120	-668	-
Cash Flow from Financing Activities	Rs m	-469	1,920	-
Net Cash Flow	Rs m	-202	1,796	-

Current Valuations for SHAKTI PUMPS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 70.7, an improvement from the EPS of Rs 13.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,126.0, stands at 35.4 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 10.9 times, while the price to sales ratio stands at 6.0 times.
• The company's price to cash flow (P/CF) ratio stood at 12.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	526.5	684.0
TTM Earnings per share	Rs	13.1	70.7
Diluted earnings per share	Rs	12.0	70.7
Price to Cash Flow	x	19.0	12.5
TTM P/E ratio	x	33.6	35.4
Price / Book Value ratio	x	2.1	2.7
Market Cap	Rs m	8,913	20,092
Dividends per share (Unadj.)	Rs	2.0	4.0

Ratio Analysis for SHAKTI PUMPS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.8x during FY24, from 1.9x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 10.7x during FY24, from 2.7x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 18.8% during FY24, from 5.8% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 27.7% during FY24, from 12.2% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.1% during FY24, from 6.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	1.9	1.8
Debtors’ Days	Days	919	1,776
Interest coverage	x	2.7	10.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.0	11.1
Return on equity	%	5.8	18.8
Return on capital employed	%	12.2	27.7

To see how SHAKTI PUMPS has performed over the last 5 years, please visit here.

SHAKTI PUMPS Share Price Performance

Over the last one year, SHAKTI PUMPS share price has moved up from Rs 829.6 to Rs 4,126.0, registering a gain of Rs 3,296.4 or around 397.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 74,066.2 (down 0.3%). Over the last one year it has moved up from 46,692.7 to 74,066.2, a gain of 27,374 points (up 58.6%).

Overall, the S&P BSE SENSEX is up 29.0% over the year.

(To know more, check out historical annual results for SHAKTI PUMPS and quarterly results for SHAKTI PUMPS)