Roto Pumps Ltd

Dear Shareholders,

The world economy continued to suffer from adverse effect of Covid, after the first wave of pandemic in 2019, the economy had started recovering gradually but unfortunately at the beginning of the Y22, new delta variant had created panic in India and in many other countries. The second wave of the pandemic left behind a trail of sufferings and loss of lives, this caused disruption in economy especially in supply chain. During this period, safety of our employees and their families was our main concern and we took all steps to provide a safe working environment and full support to all our employees during this turbulent period as a result most of our employees could continue working taking adequate precautions and the disruptions due to pandemic had limited effect on company's working. As the adverse effect of pandemic in 2022 started receding, we were caught in very turbulent situation arising out of ongoing war between Ukraine and Russia. This has adversely affected world economy and has put inflationary pressure around the world due to surge in commodity prices and disruption of supply chain. I am happy to state that during this turbulent and adverse time, your Company has managed to perform well and registered growth. I am thankful to all our employees for their unrelenting support for keeping the Company's operations going during such challenging times.

The highlight of performance of your Company in FY22 - The standalone total income was Rs 15,578.03 lakhs as compared to Rs 11,997.05 lakhs in FY21 registering a growth of nearly 30%. The profit after tax was Rs 2,624.67 lakhs, significantly higher from Rs 1,941.74 lakhs in FY21. The consolidated total income was Rs 17,992.14 lakhs against Rs 13,159.75 lakhs in FY21 registering growth of over 36%. The profit after tax has been Rs 3,024.11 lakhs against Rs 1,833.10 lakhs in FY21 registering growth of nearly 65%. The Board of Directors of your Company has recommended a final dividend of Rs 2.85 per equity share of Rs 2.00 each i.e. 142.50% for the financial year ended March 31, 2022.

Your Company has world class manufacturing Infrastructure and strong Global Marketing Infrastructure in place. Domestic Marketing Offices are strategically located in Metro Cities equipped with Technical and Experienced Manpower to take care of Marketing, Sales and After Sales Services. Your Company has its own presence in five Continents of the World with two Marketing Branch Offices and four Marketing Subsidiaries strategically located. All overseas establishments are equipped with Technical and Experienced Manpower and adequate Inventory to provide quicker deliveries of the products. Besides these, the Company also has a comprehensive network of Distributors in all other major Markets of the World. With these, the Company is smartly placed to increase its m a rket sh a re globally.

India's manufacturing sector is set for long-term growth and to gain a major share in global manufacturing output aided by infrastructure improvements which are helping to improve reliability of supplies and a supportive global environment - as various countries are looking to broad base supply sources away from China.

In pursuit to the above and as per your Company's strategy to increase its market share globally, it is proposed to set up a wholly owned subsidiary (WOS) company in UAE, which would help the Company to serve the Customers in MENA region more effectively.

India is increasingly focusing on import substitute in pursuit of Government's "Atma Nirmbhar Bharat" and "Make in India" initiative. Your Company has undertaken new projects i.e. for manufacture of Downhole pumps, mud motors and solar pumping systems. Downhole pumps & mud motors is being undertaken within the Company and is expected to be commissioned during FY23. Solar pumping systems has been undertaken in a wholly owned manufacturing subsidiary of the Company which is also expected to be commissioned during FY23. Introduction of these products in the Indian & global market would be a game changer for the Company and it is expected that these business verticals would provide tremendous opportunity for the growth of the Company in the years to come. The Solar pumping systems project of the Company would also contribute towards betterment of our environment.

Through our CSR initiatives, we are consistently focusing on healthcare, development of infrastructure facilities in schools, improvement of education system and providing housing to underprivileged section of our society.

I would like to thank all our stakeholders for their cooperation and support. I would like to thank all shareholders, for your trust and confidence, to my colleagues on the Board for their relentless support and guidance. As we continue to surge for rapid growth in years to come, future seems bright and full of promises.