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Shakti Pumps soars on receiving $6 mn advance for Uganda project

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Capital Market
Last Updated : Sep 27 2022 | 11:31 AM IST

Shakti Pumps (India) jumped 5.15% to Rs 509.65 after the company announced the receipt of advance worth $6 million from EXIM Bank on behalf of the Government of Uganda to supply solar‐powered water pumping system.

The manufacturer of energy‐efficient pumps and motors said that the company has received advance worth $6 million from Export‐Import Bank of India (EXIM bank) on behalf of the Government of Uganda represented by the Ministry of Water and Environment for supplying solar‐powered water pumping system.

The company will begin the project execution from October 2022.

The company was awarded a contract in the month of March 2021 from the Government of Uganda for supply of solar powered water pumping systems at a contract price of $35.30 million exclusive of VAT.

Dinesh Patidar, chairman and managing director, SPIL said: It is a moment of pride for us at Shakti Pumps for partnering with the Government of Uganda on this project. This will augur well with our green energy expansion plans in Africa while generating employment opportunities for the local citizens.

Export remains our focus area which has contributed 15.7% of revenue in FY22 amounting to around Rs 1,851 million with the continent currently contributing approximately 10% share in the overall export business for SPIL.

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Going forward, this successful implementation of solar‐pumps in Uganda would likely encourage other African countries to partner with us for similar mid‐sized projects.

Given our robust roadmap backed by latest in‐house R&D infrastructure, we are already a partner of choice for major export markets such as the US and the Middle East.

Shakti Pumps (India) makes energy-efficient pumps and motors. With a leading position in solar pump markets in India, Shakti exports a wide range of pumping products to over 100 countries globally.

The company reported a 19.83% jump in consolidated net profit of Rs 8.74 crore on 62.81% surge in net sales to Rs 254.48 crore in Q1 FY23 over Q1 FY22.

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First Published: Sep 27 2022 | 11:05 AM IST

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