The company primarily sales its engines to Punjab Tractors (part of M&M) and also supplies high tech components to Swaraj Mazda.

Quarterly Performance

The operating income grew by robust 53% to Rs 76.36 crore in March 2010 quarter. With increase in operating profit margin (OPM) by 110 bps to 16.7%, the operating profit grew by robust 64% to Rs 12.73 crore. In terms of cost, as % to sales net stock adjusted, raw material cost slipped by 70 bps to 74%. Also the staff cost reduced by 50 bps to 6%. Only the other expenditure grew by 60 bps to 3%.

The PBT grew by robust 58% to Rs 13.14 crore thanks to marginal depreciation cost and improved other income though partially limited by dip in interest income. The depreciation cost grew by marginal 6% to Rs 1.25 crore while the other income stood at Rs 0.57 crore (against nil in March 2009 quarter). The interest income reduced by 37% to Rs 1.09 crore. Nevertheless, 140 bps dip in effective tax rate boosted the net profit by impressive 61% to Rs 9.21 crore.

Annual Performance

In year ended March 2010, the company's topline grew by healthy 36% to Rs 282.44 crore. Increase in OPM by 220 bps to 17.6% boosted the operating profit by robust 56% to Rs 49.57 crore. Impressive growth in other income to Rs 4.18 crore (against Rs 0.17 crore in FY 09), increase in interest income by 19% to Rs 5.80 crore and flat growth in depreciation cost by 3% to Rs 4.84 crore lifted the PBT by impressive 70% to Rs 54.71 crore. The net profit was further boosted by whopping 76% to Rs 37.35 crore thanks to 220 bps dip in effective tax rate.

The Board of Directors have recommended dividend of Rs 8 per equity share for FY 10.

The promoters' shareholding stood unchanged at 50.6% for the quarter ended Mar 10. None of the shares' held by promoters are pledged.

The Scrip is hovering at Rs 328 on BSE.