Swaraj Engines Q4 results, up 23% and declares dividend of 130%
Mumbai, 25th April, 2012: The Board of Directors of Swaraj Engines Limited has met today to consider and approve the audited financial results for the financial year ended 31st March, 2012.
Q4 (Jan. – Mar. 12)
SEL has reported a Profit Before Tax (PBT) of Rs. 20.3 crores for the fourth quarter ended 31st March, 2012 as against Rs. 16.5 crores for the corresponding quarter of last year, an increase of 23%. This growth has been achieved on the strength of increased sale of 14,274 engines during Q4 as compared to sale of 12,239 engines during corresponding quarter of last year. Consequently, the Company’s net operating revenue for the quarter registered a growth of 21% and reached Rs. 118.4 crores.
On the above revenue, Profit After Tax for the quarter moved to Rs. 13.4 crores (last year Rs. 11.1 crores).
FY 2012 (Apr. – Mar. 12)
With continued enhanced engine demand during the year from its key customer – Mahindra & Mahindra Limited - Swaraj Division, SEL’s total engines supply for fiscal 2012 touched 55,239 engines as compared to 47,413 engines sold during last fiscal. As a result, the Company’s operating revenues for the year reached Rs. 448.6 crores as against last year’s 361.0 crores – up 24%.
Further, Profit Before Tax (PBT) for FY 2011-12 reached Rs. 77.3 crores as against last year’s PBT of Rs. 64.4 crores – up 20%. Profit After Tax of Rs. 52.8 crores (last year Rs. 43.9 crores) for the year translates into an Earning Per Share of Rs. 42.53 (last year-Rs. 35.35).
The Company’s continued focus on productivity improvement and timely expansion of its existing facilities contributed to a great extent in meeting increased demand. As announced earlier, the Company had undertaken an expansion project to increase its annual capacity to 75,000 engines in two phases. While the first phase of expansion to increase the capacity to 60,000 engines p.a. is almost complete barring some equipments which are still under installation, the second phase which will take the total capacity to 75,000 engines p.a. is progressing well and is expected to be completed by the end of current calendar year. This would enable the Company to meet the upcoming demands.
The Board of Directors has also recommended an equity dividend of Rs.13.00 per share for FY 2011-12.
About Swaraj Engines Ltd.
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 4,60,000 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, M&M now holds a 33.2% equity stake in SEL.
For further information please contact:
Ms. Roma Balwani
Senior Vice President and Group Head, Corporate Communications
Mahindra & Mahindra Ltd.
Mumbai, India
Phone: (+91-22) 2490 1441
Email: balwani.roma@mahindra.com
Mr. M.N.Kaushal
Whole-time Director – Swaraj Engines Limited
Mohali, Punjab, India
Phone: (+91-172) 2271649
Email: kaushal.mahesh@mahindraswaraj.com