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Swaraj Engines has reported sharp 70% jump in sales to Rs 304.91 crore for the quarter ended Mar 2021 led by sharp 62% jump in sales volume to 33831 numbers and 7% increase in per unit realization. Higher sales together with 170 bps expansion in operating profit margin to 15.1% the operating profit nearly doubled (up 98%) to Rs 46.18 crore. Other income was down by 24% to Rs 2.24 crore and thus the PBIDT was up by 84% to Rs 48.42 crore. The PBT was up by 104% to Rs 43.70 crore as depreciation as % of sales stand lower. With taxation stand higher by 99% to Rs 11.14 crore, the PAT was eventually up by 106% to Rs 32.56 crore.
Yearly performance
Sales for the period was up by 28% to Rs 986.57 crore. But with OPM expand by 80 bps to 13.8%,that together with higher sales, resulted in 35% increase in OP to Rs 135.66 crore. The other income was down by 33% to Rs 8.59 crore and thus the PBIDT was up by 27% to Rs 144.25 crore. With interest stand lower by 100% to nil (from Rs 0.01 crore) and depreciation was down by 2% to Rs 19.77 crore, the PBT was up by 34% to Rs 124.48 crore. With taxation up by 45% to Rs 31.94 crore, the net profit was eventually stood higher by 30% to Rs 92.54 crore.
During the financial year 2019-20, the Company opted for lower rate of Tax as permitted under Section 115BAA of the Income-tax Act, 1961. Consequently, Company's opening Deferred Tax Liability as on 01.04.2019 was re-measured at reduced rate and due to this, the total tax expense for the period ended 31st March 2021 is not comparable to previous corresponding period.
To expand capacity to cater to enhanced engine demand
Taking note of the expected enhanced engine demand in the coming years, the Board in its meeting on Jan 22, 2021 approved the engine capacity expansion plan from existing 1,35,000 units to 1,50,000 units per annum. The total projected outlay for the same would be financed through internal generations and surplus available with the Company.
To pay dividend of 690% for FY21
The Board, while approving the annual accounts, has recommended an equity dividend of 500% (Rs.50 per share) for the financial year ended 31s t March, 2021. Further, the Board, over and above the said normal dividend, has also recommended a special dividend payment of 190%(Rs.19.00 per share), taking the total dividend to 690% (Rs.69.00 per share) for the FY 2020-21. This is the highest ever dividend - both in terms of per share and absolute payout.
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