Q2FY24 Snapshot: Roto Pump’s Stellar Rise in Revenue and Profits

Roto Pumps Q2FY24 result update

Q2FY24 Snapshot: Roto Pump’s Stellar Rise in Revenue and Profits

Company Name: Roto Pumps Ltd | NSE Code: ROTO | BSE Code: 517500 | 52 Week high/low: 438/214 | CMP: INR 391 | Mcap: INR 1,228 Cr | PE: 30.4

Company Overview:

Roto Pump Ltd is dedicated to the manufacturing of Progressive Cavity Pumps, offering efficient and reliable pumping solutions across diverse industries, including wastewater, sugar, paper, paint, and more. The product portfolio encompasses Progressive Cavity Pumps (PCP), Twin Screws Pumps, and additional Positive Displacement (PD) pumps such as AODD and Gear pumps. The company boasts a global presence, exporting products to 55+ countries and achieving installations of 2,75,000 pumps worldwide.

Q2 Demonstrates Resilient and Impressive Topline Expansion

In the second quarter, the company experienced substantial consolidated revenue growth of 45.06% YoY (+49.48% QoQ), reaching 81.4 Cr. However, a simultaneous increase of 72.44% YoY (+87.28% QoQ) in raw material costs resulted in a gross profit of 49.8 Cr, accompanied by a contraction in gross margin by 600 bps YoY and 780 bps QoQ.

First-half struggles: Cash conversion lags behind expectations

During the first half of the year, the company faced a significant challenge in cash conversion, standing at 60% of the cash profit (EBITDA). Despite reporting an EBITDA earning of 33 Cr in H1FY24, operating cash from activities amounted to only 21 Cr, reflecting a 60% conversion of EBITDA. This indicates a notable decline from the previous year’s cash conversion rate of 98%, primarily attributed to an increase in trade receivables in the first half.

First-Half Gross Debt Sees Decline

In H1FY24, gross debt decreased by 21%, reaching 30 Cr compared to 38 Cr in H1FY23. However, net debt (gross debt-cash) increased by 46.32% in the first half compared to the previous year, standing at 15 Cr. Cash equivalents declined by 47% to 15 Cr in H1FY24 compared to the same period in the previous year.

EBITDA Skyrockets 78% YoY on Strong Margin Growth

In Q2FY24, consolidated EBITDA demonstrated an impressive growth of 78.55% YoY (+63.11% QoQ), reaching 20 Cr. This surge was propelled by margin expansion, with EBITDA margin expanding by 470 bps YoY and 211 bps QoQ to 25.24%, showcasing strong operating leverage. The company’s EBITDA margin surpasses that of its peer companies.

Valuation and Key Ratios

The stock is presently trading at a multiple of 30.4x EPS (TTM) of Rs 12.9, with a market price of 391, and an industry PE at 30.4x. The company values the stock at 1.02 times its book value. The EV/EBITDA multiple stands at 17.8x, while the industry median is at 20.5x. The trailing twelve months ROE and ROCE are 22.4% and 30.4%, respectively, and the interest coverage ratio is a robust 14.9x, indicating strong solvency.

Q2FY24 Result Update: Consolidated

➡️Consolidated revenue grew 45.06% YoY (+49.48% QoQ) to 81 Cr in Q2FY24 vs. 54 Cr in the previous quarter.

➡️Gross profit increased 31.81% YoY (+32.54% QoQ) to 50 Cr, with gross margin dropping 600 bps YoY and 780 bps QoQ due to higher raw material costs.

➡️EBITDA grew 78.55% YoY (+63.11% QoQ) to 20 Cr driven by margin expansion. EBITDA margin expanded 470 bps YoY and 211 bps QoQ to 25.24% led by operating leverage.

➡️Operating profit (EBIT) increased 83.14% YoY (+74.36% QoQ) to 17 Cr, with EBIT margin expanding by 440 bps YoY and 300 bps QoQ to 21.21%.

➡️PAT surged 77.98% YoY (+70.47% QoQ) to 13 Cr, and the PAT margin expanded by 290 bps YoY and 193 bps QoQ to 15.71%.

➡️Earnings per share (EPS) for the quarter stood at 4.07 Rs, compared to 2.39 Rs in the previous quarter.


Roto Pump Ltd demonstrated robust topline growth in Q2FY24, driven by an impressive surge in consolidated revenue and EBITDA. Despite poor cash conversion in the first half, the company showcased resilience with a decline in gross debt and notable margin expansion. The stock’s valuation appears favorable, and strong financial ratios, including ROE and ROCE, underscore the company’s solid performance. Overall, Roto Pump Ltd presents a promising outlook with a strategic focus on diverse industries and a global footprint.

The image added is for representation purposes only

Strategic Partnerships Fuel One97’s Financial Turnaround

Related Posts