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Home arrow News arrow Auto component arrow Swaraj Engines Ltd to invest Rs 55cr on capacity expansion, upgradation
Swaraj Engines Ltd to invest Rs 55cr on capacity expansion, upgradation Print E-mail
Written by Vijay   
Wednesday, 27 April 2011
Mumbai: Swaraj Engines Limited (SEL) has finalized an expansion programme to increase it's capacity from 60,000 engines per annum to 75,000 engines per annum to support the increasing engine demand from Mahindra & Mahindra Ltd. - Swaraj Division. Besides capacity augmentation, investment will be made towards upgradation of existing manufacturing facilities and adding testing & quality equipments.

The entire capex of around Rs. 55 crores on the proposed expansion will be met from internal resources.

In October 2010, the company had approved an expansion programme to increase it's installed capacity to 60,000 engines per annum in order to meet the enhanced requirements of Mahindra & Mahindra Ltd - Swaraj Division.

The board of directors of the company met today to consider and approve the audited financial results for the year ended 31st March, 2011.

Q4 profit up 25 percent.

SEL reported a Profit Before Tax (PBT) of Rs 16.5 crores for January to March 2011 against Rs.13.1 crores for the corresponding quarter last year, an increase of 25%.

The company sold 12,239 engines this year as compared to 10,406 engines last year, which resulted in an increase in its net revenue to Rs 96.9 crores, up from last year's Rs 76.4 crores, an increase of 27 %.

Profit after tax for the quarter touched Rs. 11.1 crores (last year Rs. 9.2 crores).

For the fiscal 2011, enhanced engine demand from its key customer - Mahindra & Mahindra Limited - Swaraj Division helped SEL post a Profit Before Tax (PBT) of Rs. 64.4 crores as against last year's PBT of Rs. 54.7 crores. The company's continued focus on productivity improvement contributed to a great extent in meeting this increased demand. SEL sold 47,413 engines (last year 39,143 engines) for fiscal 2011, its highest ever in a single fiscal.

Increased engine sales coupled with growth in hi-tech engine components business contributed to total operating revenue of Rs. 360.6 crores in FY 2010-11 as against last year's revenue of Rs. 282.4 crores. Profit After Tax of Rs. 43.9 crores (last year Rs. 37.4 crores) for the year translates into an earning per share of Rs. 35.35 (last year Rs 30.08).

The board of directors has also recommended an equity dividend of Rs. 10.00 per share for FY 2010-11.

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