How has Shakti Pumps' stock performed recently?

Shakti Pumps' shares rallied 14.25% on December 11th, recovering from an earlier decline over eight trading sessions.

What are the challenges affecting Shakti Pumps' margins?

Margins are impacted by rising raw material prices, including copper, steel, and solar panels, and slowed installations due to an extended monsoon.

Home / Business and Economy / Shakti Pumps Shares Soar After Maharashtra Contract Win

Shakti Pumps Shares Soar After Maharashtra Contract Win

Q: What recent order did Shakti Pumps receive from Maharashtra?

Shakti Pumps received a Letter of Empanelment from Maharashtra State Electricity Distribution Company for solar pumping systems worth ₹443.78 crore.

11 Dec

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Summary

Shakti Pumps secured a ₹443.78 crore solar pump order from Maharashtra.
The company's order book stood at ₹13,000 crore as of September end.
Revenue rose 5% year-on-year despite monsoon and raw material challenges.

Shakti Pumps Shares Soar After Maharashtra Contract Win

Shakti Pumps experienced a notable surge in its share price following the announcement of a significant contract win from the Maharashtra State Electricity Distribution Company. This order, valued at ₹443.78 crore, is for the supply and installation of off-grid DC solar photovoltaic water pumping systems, to be executed within sixty days.

The company's financial performance in the September quarter showed a 5% year-on-year revenue growth, reaching ₹6,664 million. However, this growth was somewhat constrained by an unusually long monsoon season that hampered installation activities. Additionally, rising prices for key raw materials like copper and steel impacted operating margins.

Despite these operational headwinds, Shakti Pumps maintains a strong order book of ₹13,000 crore as of the end of September. The company also continues to expand its global footprint, with successful project executions in several international markets and growing demand from regions like the USA, Middle East, and Africa.