Dear Shareholders,
I hope you all are doing well and staying healthy during these trying times. The past
year has been a test for humanity. It has shown the importance of always being prepared
with a contingency plan. It has demonstrated how it is vital to remain resilient in the
face of adversity and put your best foot forward. But despite it all, there is positive
momentum across all categories and geographies. It gives me immense pleasure to see how
the world's greatest immunisation drive has pushed morals of people to rise once again,
making things increasingly positive.
I am honoured to inform you that we met the challenges head-on and rose above the tide.
Our team's tremendous effort is reflected in our outstanding performance. Despite such
extraordinary times and unexpected hurdles, I want to commend the Shakti team for
consistently supporting and advancing Shakti Pumps, both in performance and its vision to
incorporate solar energy into India's agrarian life.
PM-KUSUM - Unlocking Solar Energy to Power Pumps
The Government's move towards solar-powered pumps for the farmers - making them the net
producers of electricity from net consumers - have sown the seeds of transformation in the
agriculture and allied space. Demand issues are now a thing of the past, thanks to
increased cooperation from authorities, Governments, local bodies, and, most
significantly, our farmers.
At Shakti Pumps, we have observed conversions at the ground level under the KUSUM
initiative during the previous few years. The Government has been actively focussing on
our farmers' growth and progressing towards their total socio-economic development. To
this line, KUSUM, solar pumps and Shakti Pumps are all anticipated to play a vital role.
With rising temperatures and global warming, lowering carbon emissions has become a
pressing priority, prompting the Government to take appropriate action. As a result, we
are now seeing a greater focus on renewable and alternative energy from the Government.
Our vision and tactics at Shakti Pumps align with global environmental goals and
Government policies aimed at reducing increasing temperatures and pollution.
Shakti Pumps and Solar Pumping
With the developments under KUSUM, Shakti Pumps has risen to the top of the industry
this year. In India, the Company has focussed on promoting solar energy. We have worked
hard to make solar pumping in India more affordable and technologically advanced. We
recently opened a new VFD unit, which has helped us decrease manufacturing costs and
allowed us to produce pumps that are faster and more efficient.
Strategy Going Ahead
KUSUM was in its pilot phase during the previous year and in the year under review as
well. We have all worked relentlessly to promote the project in India, with a higher level
of adoption of solar pumps. All of India's achievements in the solar pumping space have
better aligned the national and the state's thought processes. This indicates the immense
potential that solar pumps have in India. We have been placing strong focus on KUSUM, and
will continue to try and accelerate the adoption of solar pumping in India.
Our Performance During the Year
Revenue from operations for the year stood at ' 929.66 Cr., up 142% with an EBITDA of '
145.82 Cr., up by 743% and EBITDA margin of 16%. Profit for the year stood at ' 75.58 Cr.,
with a margin of 8%. We have improved our production and sales multifold, which enhanced
our cash flows during the year. We have been enjoying a stable payment cycle with the
Government. Further, under the KUSUM scheme, we have an advance payment system, which
positions us better when it comes to payment cycles. We saw a spike in raw material prices
during the year with a potential reduction in margins. So we took to R&D, redesigned
and launched new products costing lesser and with improved performance. This was a
principal contributor that enabled us to maintain our margins. I would also like to
mention that we have won a ' 200 Cr. contract funded by the Indian Government to install
solar pumps in Uganda. This will help us expand green energy in Africa while also
generating employment opportunities for African citizens.
R&D Capabilities
We see R&D as our future and aim to stay ahead of our peers in the same. Over the
years, we have invested a lot in our R&D infrastructure and development. We have
improved our motor pumps and made them faster and efficient. In the VFD space, we have
launched several new products. We enjoy an established and renowned name for our products
in the market, and the organic demand we are witnessing today is a testimony to our
R&D strength and execution capabilities.
Covid-19 Safety
For all of us, the early months of the Covid-19 outbreak were challenging. At Shakti
Pumps, we followed all of the Government's Covid-19 regulations and protocols. Our
facility was stalled during the first month of national lockdown. However, we then
progressively increased our capacity to 50% across all of our sites. Our people were
incredibly supportive during this challenging period. All of our staff worked together
brilliantly and quickly adjusted to the new normal. We were back up and running in no
time, performing much better than before.
During the pandemic, the safety of our people was a priority. We strictly adhered to
social distancing and sanitisation protocols. All of our facilities are regularly
sanitised since then. Our employees always wear masks and use Covid-19 appropriate safety
equipment. For those who were infected with the virus, we provided them with additional
compensation and a helping hand. We also vaccinated our employees and their families
against Covid-19. Our team's joint efforts have propelled us into a new growth orbit, and
we are confident to scale newer heights going ahead.
Vote for Thanks
I want to take this opportunity to congratulate our staff for their devotion, hard
work, and sacrifices in helping us reach our objectives. I would also like to thank our
clients, suppliers, bankers, the central and state governments, and other stakeholders for
their steadfast trust, confidence, and support. I sincerely appreciate all our colleagues'
undeterred support through the years and only hope it continues in the times to come.
Warm regards,
Dinesh Patidar
Chairman and Managing Director