Shares of Shakti Pumps were locked in a 5 percent upper circuit at Rs 4,822.55, following the announcement of a Rs 116.4 crore order under the PM-KUSUM scheme. This new contract, awarded by the Haryana Renewable Energy Department (HAREDA), involves the supply, installation, and commissioning of 3,174 solar water pumping systems within a 120-day timeframe.
The stock has delivered a remarkable performance in 2024, up 368 percent year-to-date, significantly outpacing the Nifty 50's 11 percent gain.
For the September 2024 quarter, Shakti Pumps' net sales rose 315 percent increase year-on-year to Rs 634.59 crore and net profit skyrocketed by 1,630 percent to Rs 101.42 crore.
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"Our achievements are a direct result of faster execution of orders within both the domestic and international spheres. Profitability margins also witnessed a significant expansion which can be mainly attributed to the realization of economies of scale, which was facilitated by increased operational activities during the quarter," said Dinesh Patidar, Chairman, Shakti Pumps.
"Given our leadership position in the PM KUSUM Scheme, we are confident that we will continue to witness an influx of orders, which will play a pivotal role in our sustained growth," he added.
The company's order book stood at Rs 1,800 crore as of September 2024.
"Given our robust order book, in conjunction with our consistent success in winning more orders, we are
confident that we will deliver better than anticipated results this year. This confidence also stems from our ability to
execute the current orders efficiently, backed by our advanced backward-integrated manufacturing capabilities.
Parallelly, we continue to remain focused on expanding our presence in retail business as well as the EV business, which would contribute to a sustained financial performance in the future," Patidar said.
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