Roto Pumps - Fluid Engineering Company

A post in this thread after a long time… I have also just started looking into this company… Muthukumar, The infomation above is good. Have you also looked into its product catalogue and compared it with other players in this industry like KSB, Shakti, etc?

Also has anyone got info regarding present capacity utilisation. How much capacity will be added with the expansion at Greater Noida which as per AR is supposed to complete in last qtr of FY14.

@hitesh, @manish – I’ve tried analyzing the product catalogue comparison and capacity expansion. Could not make much progress. Have sent few mails regarding capacity expansion timelines, but did not get any responses from roto investors relations team.

Any views on Re. appreciation (since all revenues are coming in USD. And GM may have impacts). Please share your updates on the analysis and views.

Recent updates:

-Roto Pumps is planning to set up a joint venture company in Singapore.

-Roto Pumps will set up a wholly owned subsidiary company in the US

Some recommendations: http://www.sunday-guardian.com/business/roto-pumps-at-rs-140-is-an-excellent-buy-for-the-medium-term

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Any one tracking this company, came across this article

As per the article, the capacity has been ramped up, leaving significant room for market capture/share. results also pointing to the same

Today’s result seem to be quite good. Q4 FY '18 results were also decent. They have built capacities in advance. If demand revives over next few quarters then there could be significant increase in their topline.

Roberto el S

Disc: Invested

roto pumps have the highest margins in the industry compared to other players like ksb , shakti, kirolskar,etc. it seems to be only focussing on high margins products, roto pumps has hardly 2-3 products offerings
also roto enjoy the highest share of exports as a percentage of sales when compared to other players.
roto pumps right now is operating at low capacity utilization hence leading to fixed asset turnover. the retrun ratios might go up with this turning around.
attaching a sheet comparing the basic financial across all the major players in the industry
Pumps.xlsx (14.9 KB)

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we need to understand the product mix better and how the company plans to improve its sales , triggers for future growth

I had worked on this company few years back. It’s an interesting company. However as you mentioned they are more focused on exports so to ascertain the drivers of growth are a bit difficult. They are into a niche area of pumps which is only ~5-10% of the overall market. Their focus has been to get into spares -which is higher margin and recurring. They had done a fairly big capex in Greater Noida, which I think has come on-line in the last year.

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  • the company manufactures single screw (progressive cavity), twin screw and three screw pumps which are used to transfer viscous liquid through a pipe. this is a niche market, because making pumps for viscous fluids is not easy .
  • these pumps are more complex to design , also there is a large degree of customization for these pumps.
  • roto pumps is registered into more than 70 countries , registrations have a time consuming nature which acts as a an entry barrier
  • roto pumps has a strong brand name in the organized market, capturing 40 % of organised niche market .
    -with strong capex due to come in oil & gas industry roto pumps can benefit
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Roto Pumps has announced that the registration of Design of the new high efficient maintenance in place of the progressive cavity pump has been granted by Controller General of Patents, Designs & Trade Marks.

Above news from businessline magazine

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What is MoneyLife complaining about here? Anybody got a subscription so they can share the content of the article?

I don’t know if its correct… found this in google…

https://www.getpaidindia.com/Roto_Pumps_Limited

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Anyone tracking this company @jimitshah

Allotment of land for capex

The whole capex is funded by internal accruals it’s a debt free company having strong cash flows and strong margins.

Current fixed assets are about 40 cr and post capex fixed asset will be more than 100 Cr and no debt on books current Mcap is 250 cr.

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Just saw your post. The Moneylife article is saying that the return on equity (RoE) of the company is 7.85% and net profit to capital employed ratio is just 4%. Why are the returns so poor for a company that derives 65% of revenues from exports? Why has it expanded its capacity when the returns are poor? Another remark is that cash generated is disappearing into fixed assets which do not generate enough incremental sales.

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Just to be clear: I replied to your post regarding the contents of the Moneylife article. Personally, I am not actively seeking those answers, Moneylife article asked those questions.

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