ShaktiiPumpsIn

ndiaLimittedQ1Fy2
2016Resu
ultsUpdate:

INR Mn

Jun-15
5

Jun-14

s / Income f rom
m Operations
Net Sales

587.1

697.0

RM Cons
sumed

330.6

349.8

Change in
i inventory

(64.6)

(1.1)

Contribution

321.1

348.3

%
54.7%

50.0%

Contribution Mgn %
e Costs
Employee
% of sale
es
Other Ex penses
es
% of sale
EBITDA
M
%
EBITDA Margin

99.4

80.4

16.9%

11.5%

128.2

127.6

21.8%

18.3%

5
93.5

140.4

15.9%

20.1%

Deprecia
ation

28.7
7

19.3

EBIT

64.8
8

121.1

es
% of sale

11.0%

17.4%

Interest

32.6

36.1

PBT

32.2

84.9

5.5%

12.2%

es
% of sale
Taxes
PAT
gin %
PAT Marg

8
6.8

17.0

25.5
5

67.9

4.3%

9.7%

Revenuee
ShaktiPumpsreporttedsalesof INR587.1m
mnforthequ
uarterended
dJuneFY201
16,whichwaas15.8%
han the salees reported in the corrresponding quarter
q
of the
t previouss financial year.
y
The
lower th
declineiinrevenueswaslargelyd
dueto
(a) Geo
opoliticalissu
uesintheMiddleEast(largelyoutsideeourcontro
ol)and
(b) Delaaysincommissioningofssolarpumpp
projectsinth
heMarchqu
uarter2014((FY14),therrevenues
ofw
whichwerereecognizedintheJunequ
uarterFY201
15.

ography
Revenueesplitbygeo
INRMn
n
Jun15
Jun14
wth
Grow
Exports
Domesttic
OtherIn
ncome
Total

286.6
287.3
13.2
587.1

373.4
314.5
9.1
697.0

23.2%
8.6%
44.8%
15.8%

ExportSSegment
IntheQ
Q1FY15,salestotroubledcountriessintheMiddleEast(IraaqandLibya)constituted
daround
39%ofo
overallexports.Followin
ngtensionsin
ntheMiddleeEast,theCompanydeccidedtonot focuson
these co
ountries. Th
he reality is that exclud
ding these troubled
t
cou
untries in th
he Middle East,
E
the
companysexportsggrew25.5%ffollowingenhancedfocusonothergeographies.

ExportMarket(INR
Jun15
Jun14
Grow
RMn)
wth
TotalSaales
LessMiddleEastReggions
(Troubleed)
ExclMid
ddleEastRegions
(Troubleed)

286.6
0

373.4
145.0

23.2%
100%

286.6

228.4

25.5%

Domesticsegment
overall domeestic sales deeclined 8.6%
% in the quaarter ended June FY 2016 compareed to the
While o
correspo
onding quartter of the previous
p
year, the declin
ne was only on account of the solar project
businesss, all other domestic
d
bu
usiness segm
ments reported growth. Excluding so
olar project business
thedom
mesticbusine
essgrewby1
13.6%

DomessticSales(IN
Jun 15
NRMn)
n14
Growth
Jun
Domestticsales
(exSolaarprojectsale
es)
SolarPrrojects
Total

287.3

2
253.0

13.6%

0
287..3

61.5
314.5
3

100.0%
8.6%

mpy.Someo
ofthesolarp
projectordersrecordedinJune2015
5quarter
Thesolaarprojectsbusinessislum
relateto
oprojectsthatweretobeexecutedinFY2014.

ution
Contribu
Despite lowerreven
nues,contrib
butionmarginsincreased
dto54.7%duringthequ
uarterended
dJuneFY
om50%inth
hesamequaarterofthep
previousyear,demonstraatingourabilitytomarketvalue
2016fro
addedandmarginsaccretivepro
oducts.

Marginss
a) The decline in EBITDA marrgins despitee an increassed contribu
ution margin
n was on account of
ecostsincreaasedfollowingincreaseinteamstrengthand
loweeroperatingleverage.Ouremployee
recrruitmentofeexperienced marketingp
professionalss,thebenefiitsofwhich willbeproggressively
visib
ble.
b) ThecompanyreeducedintereestcoststoINR32.6Mn fromINR36
6.1Mn.
preciation waas higher on
n account of additional capex durin
ng the quartter ended March
M
FY
c) Dep
5.
2015

Outlookk
a) The company remains
r
con
nfident of its investmeent in Produ
uct, People,, Place (distribution
work)andPlaantandisho
opefulofimp
provedresultsinthesub
bsequentquaarters.
netw
b) The companyhaasderisked itselfbycreeatingastron
ngfocuson marketsouttsidetheMid
ddleEast
f
markets to make a healthy co
ontribution to
t export sales in FY
and we expect these new focus
6.
2016