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Home arrow News arrow Auto component arrow Swaraj Engines posts 26% rise in net profit for Q1 FY12 at Rs. 13.5 cr
Swaraj Engines posts 26% rise in net profit for Q1 FY12 at Rs. 13.5 cr Print E-mail
Written by Vivek   
Thursday, 04 August 2011
Mumbai: Riding on the sustained demand for engines, Swaraj Engines Limited (SEL) has posted 26% rise in net profit at Rs. 13.5 crores for the first quarter ended 30th June, 2011 against Rs. 10.7 crores for the corresponding quarter of last year.

During the quarter, engine supplies increased to 13,853 units as against 11,428 units supplied during the first quarter of last fiscal — up 21%. Concurrently, supply of hi-tech components to SML Isuzu also grew to Rs. 5.6 crores from last year's Rs. 5.2 crores.

Reflecting increased sale volumes, net revenue for the first quarter of the current fiscal reached Rs. 110.2 crores , as compared to Rs. 84.9 crores for the corresponding quarter of the last financial year.

It recorded an earning per share of Rs. 10.90 . (last year Rs.8.61). On a sequential basis, the net profit rose by 22% from Rs. 11.1 crores during the previous quarter ended 31st March, 2011.

Since start of commercial operations in 1989-90, SEL has supplied around 4,04,000 engines for fitment into Swaraj tractors. SEL's engine business currently constitutes around  95% of the company's product revenue. The balance 5% represents the value of hi-tech engine components being supplied to SML Isuzu for assembly of commercial vehicle engines.

Keeping future demand for engines in mind, the Company, in the last financial year, had  announced expansion programmes to increase its annual capacity to 75,000 engines in two phases. The work on these expansion projects is progressing well and it is expected that capacity of 60,000 engines per annum under first phase would be available by the end of the current fiscal.

Swaraj Engines Limited (SEL) was set up in 1985 in Mohali, Punjab, to manufacture engines for fitment into the Swaraj brand of tractors for Punjab Tractors Ltd. (PTL), which , has since been merged with Mahindra & Mahindra Ltd. (M&M). Subsequently, SEL has also 1 become a supplier of hi-tech engine components to SML Isuzu Ltd., the erstwhile Swaraj Mazda Ltd. After the M&M-PTL merger in 2009, SEL is now part of the M&M group (33.2% equity stake).

 
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