Swaraj Engines

Swaraj Engines supplies engines to the Swaraj division of Mahindra & Mahindra and it posted A good Q4FY17 performance. Its net profit for the quarter rose 30% (YoY) at Rs.15 crore on a 41% increase in total income at Rs.161 crore. EBITDA also did well, up 51% at Rs.24 crore and margins going up from 14% to 15%.

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 Q$ at 19,842 units, up 42%. Last Q4, the company had a higher tax provision  as it had claimed benefit of investment allowance.

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 stood at Rs.251 crore. The company continues to remain largely debt free.

The company ended FY17 with the highest ever engine sales at 82.297 units. Its PBT, for the first time crosses the Rs.100 crore mark at Rs.105.50 crore, a growth of 38%. It ended the fiscal with a net profit at Rs.69 crore, up 35%.  Its equity stands ay Rs.12.42 crore and EPS for the year was at Rs.55.42 (FV of Rs.10).