This company's Q4 net profit grew a staggering 45x! How did it pump out such gains?

The modern tale of finding El Dorado, the fabled city of riches sought by explorers in 16th century South America, has played out in the Indian stock market. Shakti Pumps, a manufacturer of pumps and motors, found its own El Dorado a few years ago that has begun to generate handsome rewards recently. The treasure trove helped the company grow its net profit almost six times in FY24. But in the latest quarter, this figure grew even more astronomically. The company's profit after tax of Rs 2 crore in Q4 FY23 shot up to Rs 90 crore in Q4 FY24; a leap of 45 times in a year! Landing a windfall Shakti Pumps' El Dorado has been the government's 'PM-KUSUM' scheme, which has landed the company its recent windfall. The scheme aims to increase solar energy usage in agriculture by subsidising farmers to use solar pumps. After its launch in 2019, the company that had been eyeing this opportunity shifted gears and turned its focus sharply towards solar pumps through innovation and research. Its first-mover advantage has helped it clutch the highest market share under the scheme, which was 25 per cent as of Q4 FY24. In the sa