Swaraj Engines Q1 Net Up 26%
Swaraj Engines posted 26% rise in net profit at Rs. 13.5 crores for the first quarter ended 30th June, 2011.
- (1888PressRelease) August 06, 2011 - S.A.S.Nagar (Mohali): The Board of Directors of Swaraj Engines Limited has met today to consider and approve the unaudited financial results for the first quarter ended 30th June, 2011.
Riding on the sustained engines demand, Swaraj Engines 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 which translates into 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.
During the quarter, engine supplies moved 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.
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.
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 4,04,000 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.
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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