Shakti Pumps drops 5% despite reporting 55% jump in Q1 net profit

NEW DELHI: Shakti Pumps Ltd plunged as much as 5 per cent in trade on Tuesday, even though the company reported 55 per cent jump in net profit at Rs 6.79 crore in the quarter ended June 2014 compared to Rs 4.37 crore in the same period last year.

At 09:40 a.m.; the stock was locked in lower circuit at Rs 218.50, down 4.98 per cent.

The company, a leading manufacturer of energy efficient submersible pumps and solar pumps, has registered total sales of Rs 68.78 crore for the quarter ended June 30, 2014, a 40 per cent growth, and net profit stands at Rs 6.79 crore, a 55 percent growth, a company statement said.

"The current market environment has also been conducive for our growth in the quarter that ended. Going forward, we will continue to focus on exports and expand our domestic business well by rolling out new energy efficient products and tapping new market segments," PTI said in a report quoting Shakti Pumps Limited Chairman and Managing Director Dinesh Patidar.