The company has incurred a cumulative phase wise capex of Rs. 75cr for downhole, mud motors and solar pumps. Some scuttlebutt indicates that ROTO has best quality pumps and hence command some brand value.
At the annual meeting, management also stated that, in contrast to positive displacement pumps, which have operating margins of 20% plus, solar pumps will be a low-margin product with operating margins of 14–16%.
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