Swaraj Engines Posts its Ever Best Q3 Performance

The Board of Directors of Swaraj Engines Limited (SEL) met today to consider and approve the financial results for the third quarter and nine month period ended 31st December, 2020.

Q3 FY21 (Oct. - Dec. 2020)

The tractor industry remained on the strong growth trajectory in the third quarter as well. Consequently, riding on the increased engine demand from the Company's key customer, Swaraj Engines Limited posted its ever best third quarter performance in terms of engine sales and profits. While the engine sales of 31,193 units for Q3 FY21 registered a growth of 57.6% over 19,797 units sold during corresponding quarter last year, Profit Before Tax (PBT) at Rs. 33.63 crores was higher by 94.1 % over same period last year.

Driven by the above growth in engines sale, the net operating revenue for third quarter stood at Rs. 272.39 crores as against Rs. 170.07 crores for the corresponding quarter of last fiscal - up 60.2%. The Company, with its persistent focus on operating costs, posted an operating profit of Rs. 36.60 crores as against Rs. 19.69 crores for Q3 of last year - a growth of 85.9% accompanied with margin improvement of 180 basis points. While the PBT for the third quarter stood at Rs. 33.63 crores (last year Rs. 17.33 crores), the PAT was Rs. 25.02 crores (last year Rs. 12.89 crores). Further, the PBT margin at 12.2% of total revenue also shown improvement by 220 basis points over same period last year.

Nine month period FY21 (Apr. - Dec. 2020)

Despite the significant drop in engine sales volume during Q1 of current fiscal in view of nationwide lockdown due to Covid 19, the Company on the strength of good performance posted during subsequent quarters, surpassed its cumulative engine sales for nine month period ended 31st December, 2020 and posted 15% growth over same period last year. On the total engine sales of 79,438 units (last year 69,101 units), the net operating revenue for the nine month period stood at Rs. 681.66 crores (last year Rs. 598.17 crores) and the Company posted a PBT of Rs. 80.78 crores (last year Rs. 71.64 crores) and PAT of Rs. 59.98 crores (last year Rs. 55.20 crores).

Shares of SWARAJ ENGINES LTD. was last trading in BSE at Rs.1320 as compared to the previous close of Rs. 1349.5. The total number of shares traded during the day was 1752 in over 521 trades.

The stock hit an intraday high of Rs. 1373.85 and intraday low of 1315. The net turnover during the day was Rs. 2333711.

Source : Equity Bulls

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