Capitaline

Results 26-Oct-21

Analysis

Swaraj Engines

Net up 25% largely on higher sales and lower depreciation

Standalone net sales (including other operating income) of Swaraj Engines for the quarter ended Sep 2021 has increased 17.56% to Rs 343.59 crore. With volume growth stand at 2% to 35291 numbers, the growth in revenue was driven largely by 15% jump in per unit realisation. The sharp jump in realisation seems largely due to better product mix as well as passing on incremental cost to customers. Operating profit margin has jumped from 13.69% to 13.89%, leading to 19.33% rise in operating profit to Rs 47.73 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 78.35% to 79.06%. Employee cost decreased from 3.88% to 3.26%. Other expenses fell from 4.04% to 3.98%. The impact of higher RMC was offset by fall in other cost heads. Other income up 12.50% to Rs 2.34 crore. PBIDT rose 18.99% to Rs 50.07 crore. Provision for interest remained nil. PBDT rose 18.99% to Rs 50.07 crore. Provision for depreciation down 15.60% to Rs 4.76 crore. Profit before tax grew 24.34% to Rs 45.31 crore. Provision for tax was expense of Rs 11.54 crore, compared to Rs 9.32 crore. Effective tax rate was 25.47% compared to 25.58%. Profit after tax rose 24.52% to Rs 33.77 crore.

Half yearly performance

Net sales (including other operating income) of Swaraj Engines has increased 60.85% to Rs 658.30 crore. Operating profit margin has jumped from 12.92% to 14.44%, leading to 79.77% rise in operating profit to Rs 95.06 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 77.75% to 78.28%. Employee cost decreased from 5.02% to 3.42%. Other expenses fell from 4.45% to 3.95%. Other income up 19.57% to Rs 4.95 crore. PBIDT rose 75.39% to Rs 100.01 crore. Provision for interest remained nil. PBDT rose 75.39% to Rs 100.01 crore. Provision for depreciation down 3.24% to Rs 9.55 crore. Profit before tax grew 91.86% to Rs 90.46 crore. Provision for tax was expense of Rs 23.04 crore, compared to Rs 12.19 crore. Effective tax rate was 25.47% compared to 25.85%. Profit after tax rose 92.85% to Rs 67.42 crore.

Other developments

Rajinder Arora, Chief Financial Officer and Key Managerial Personnel of the Company, retires with effect from the close of business hours on 31st October, 2021, upon his attaining the age of superannuation. The BOD taking note of that and approved appointment of Mahesh Gupta as the Chief Financial Officer and Key Managerial Personnel of the Company with effect from 1st November, 2021.

Equity capital increased from Rs 12.13 crore as of 30 September 2020 to Rs 12.14 crore as of 30 September 2021. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 52.15% as of 30 September 2021 ,compared to 52.18% as of 30 September 2020 .

Cash flow from operating activities has turned positive Rs 77.34 crore for YTD ended September 2021 from negative Rs 23.24 crore for YTD ended September 2020. Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 15.55 crore, compared to Rs 1.97 crore during the YTD ended September 2020.

Swaraj Engines: Results
	2109 (3)	2009 (3)	Var. (%)	2109 (6)	2009 (6)	Var. (%)	2103 (12)	2003 (12)	Var. (%)
Sales	343.59	292.28	18	658.30	409.27	61	986.57	773.30	28
OPM (%)	13.9	13.7		14.4	12.9		13.8	13.0
OP	47.74	40.00	19	95.07	52.88	80	135.66	100.43	35
Other income	2.34	2.08	13	4.95	4.14	20	8.59	12.78	-33
PBIDT	50.08	42.08	19	100.02	57.02	75	144.25	113.21	27
Interest	0.01	0.00		0.01	0.00		0.00	0.01	-100
PBDT	50.07	42.08	19	100.01	57.02	75	144.25	113.20	27
Depreciation	4.76	5.64	-16	9.55	9.87	-3	19.77	20.13	-2
PBT	45.31	36.44	24	90.46	47.15	92	124.48	93.07	34
EO	0.00	0.00		0.00	0.00		0.00	0.00
PBT after EO	45.31	36.44	24	90.46	47.15	92	124.48	93.07	34
Current tax	11.54	9.32	24	23.04	12.19	89	31.94	22.03	45
PAT	33.77	27.12	25	67.42	34.96	93	92.54	71.04	30
EPS* (Rs)	#	#		#	#		76.2	58.5
* Annualised on current equity of Rs 12.14 crore. Face Value: Rs 10
Var. (%) exceeding 999 has been truncated to 999
LP: Loss to Profit PL: Profit to Loss
EO: Extraordinary items
EPS is calculated after excluding EO and relevant tax
# EPS can not be annualised due to seasonality in business
Figures in Rs crore
Source: Capitaline Corporate Database

Peer Comparision (Standalone)	Q-202109
Peer Comparision (Standalone)	Sales (Rs. Crs)	var.(%)	OP (Rs. Crs)	var.(%)	Net Profit (Rs. Crs)	var.(%)	Share Price(Rs) 25-Oct-2021	var.(%) over One year	TTM EPS	TTM PE
Swaraj Engines Ltd	343.59	17.56	47.73	19.33	33.77	24.52	1,677.80	17.86	102.96	16.30
Industry	343.59	17.56	47.73	19.33	33.77	24.52	1,975.95	11.55		13.84

Previous News

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( Results - Announcements 27-Apr-22 15:32 )

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( Results - Announcements 27-Jan-22 08:18 )

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( Results - Analysis 27-Apr-22 16:46 )

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( Corporate News - 18-Apr-24 17:37 )

Board of Swaraj Engines recommends final dividend
( Corporate News - 18-Apr-24 17:37 )

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( Results - Announcements 23-Jan-21 08:53 )

Board of Swaraj Engines appoints CEO
( Corporate News - 27-Apr-22 14:12 )

Board of Swaraj Engines accepts resignation of director
( Corporate News - 27-Apr-22 19:34 )