SWARAJ ENGINES
Swaraj Engines supplies engines to the Swaraj division of Mahindra & Mahindra and it posted a very good Q3FY17 performance. Its net profit rose by a smart 82% (YoY) at Rs.15 crore on a 47% rise in total income at Rs.155 crore.
EBITDA was up 80% at Rs.23 crore and margins showed a very good improvement from 12.1% to 14.9%. This fantastic growth was thanks to the 49% jump during the quarter in engine sales and it achieved the highest ever quarterly sale of engines in Q3 at 19,150 units.
The company is planning to increase its capacity to meet the growing demand from current 1,05,000 pa units to 1,20,000 pa units. This is to be funded entirely via internal accruals – reserve as at 31st Dec 2016 stood at Rs.251 crore. The company continues to remain largely debt free.
Its 9MFY17 net profit was at Rs.53 crore, already ahead of FY16 net profit of Rs.51 crore. Annualised EPS is at Rs.57.50 (FV of Rs.10)