Swaraj Engines Ltd. posts Q2 PBT of Rs. 17.0 crores
Written by Vivek   
Saturday, 22 October 2011
Mumbai: Swaraj Engines Ltd. (SEL) reported a PBT of Rs. 17.0 crores for the second quarter ended 30th September, 2011 compared to corresponding quarter of last year’s profit of Rs. 15.8 crores - a growth of 8%. During the said quarter its engine despatches to Mahindra & Mahindra Ltd. - Swaraj Division moved to 12,839 engines from last year’s level of 11,452 engines.

Riding on the growth in engines volume, net revenue for the second quarter reached Rs. 102.9 crores from Rs. 86.2 crores for the corresponding period of last fiscal.

While Profit Before Tax for the quarter was Rs.17.0 crores as against Rs.15.8 crores posted for same period last year, Net Profit for the quarter reached Rs.11.8 crores compared to last year’s profit of Rs.10.8 crores for the same period – a growth of 9%.

For the half year ended 30th September 2011, on supplies of 26,692 engines, net revenue reached Rs. 213.1 crores against Rs. 171.1 crores for the same period of last year. PBT for this six month period was Rs. 36.6 crores against Rs. 31.5 crores for the corresponding six month period of the last financial year. Profit After Tax of Rs. 25.3 crores (last year Rs. 21.5 crores) has translated into an earning per share of Rs. 20.39 (last year Rs. 17.32) for the first six months of the current fiscal.

The Company's phased capacity enhancement programme totalling to 75,000 engines per annum is moving as per schedule and the same will be fully funded through internal accruals. The first phase of expansion taking annual capacity to 60,000 engines is expected to be completed in the last quarter of 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 become a supplier of hi-tech engine components to SML Isuzu Ltd., the erstwhile Swaraj Mazda Ltd..

Since start of commercial operations in 1989-90, SEL has supplied around 4,31,000 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.

After the M&M-PTL merger in 2009, SEL is now part of the M&M group (33.2% equity stake).

Related news
More recent
Earlier on