Ind-Ra Assigns IND A Ratings With Stable Outlook On Shakti Pumps

“As per the rating agency, the key rating drivers were (company’s) established market position, strong distribution network, diversified revenue portfolio, FY22, steady revenue profile in 9M FY23 (April-December) and robust credit metrics," the company said in a statement.

Dinesh Patidar, chairman and managing director, Shakti Pumps (India) Ltd, said that the IND A/stable ratings demonstrate the company’s focus on balance-sheet growth. Going forward, the company aims to maintain its 30-40% of the market share of the KUSUM scheme while further optimising operations.

“We have also witnessed phenomenal growth in our export segment, seen positive reception of our EV products and increased traction for our new products in the B2C segment. The recent government initiatives also augur well for sustained growth in the future," he said.

Shakti Pumps has a well-diversified product portfolio, finding applications in agriculture, and residential & industrial sectors. During 9MFY23, the contribution from the agriculture segment increased to 70% of the revenues (FY22: 69%; FY21: 58%). Of the total orders from the agriculture segment during 9MFY23, about 90% was for KUSUM (FY22: 81%; FY21: 77%).

The company operates in over 100 countries and has established three overseas subsidiaries to cater to the demand in these regions. During 9MFY23, exports contributed about 22% to the total revenues (FY22:16%; FY21: 19%).