The company primarily sells engines to Swaraj Division of M&M and supplies high tech components to Swaraj Mazda.

Quarterly Performance

The operating income grew by marginal 8% to Rs 118.16 crore constrained by flat offtake in engine sales. The engine sales that constitute 95% of its topline grew by meager 1% to 14014 units due to sluggish demand for tractors. The company supplies its engines to Swaraj tractor brand of Mahindra & Mahindra. The OPM crashed by 90 bps to 15.3% thereby constraining the growth in operating profit to flat 1% to Rs 18.03 crore. Raw material costs, as % to sales net of stock adjustments, grew by 50 bps to 76%. Also the staff cost rose by 30 bps to 5%. Only other expenditure fell by 40 bps to 4%.

The PBT too grew by flat 1% to Rs 19.70 crore on higher depreciation cost (up 51% to Rs 1.40 crore) offsetting the growth in other income (13% up to Rs 3.08 crore). Similarly, net profit also grew by flat 1% to Rs 13.70 crore aided by 40 bps fall in effective tax rate

• The promoters' shareholding stood unchanged at 50.6% as on 30^th June 2012. None of the shares' held by promoters are pledged.

The scrip is trading at Rs 414.90 on BSE