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Net sales for Swaraj Engines was lower by 35% in Mar'15 quarter to Rs 104.30 crore. Due to severe drop in tractor industry in Q4 FY'15, company's engine sale also witnessed sharp decline and stood at 12344 units down by 35% YoY. Although focus was given on costs front, lower absorption of fixed costs due to drop in volume coupled with higher CSR expenses, lead OPM being lower by 230 bps to 12.8%, thus leading a further fall in OP by 44% to Rs 13.37 crore. Other income was up by 2% to Rs 4.11 crore. Depreciation was up by 19% to Rs 3.02 crore. After providing total tax of Rs 6.21 crore, down by 23%, PAT for quarter ended Mar'15 stood at Rs 8.25 crore as compared to PAT of Rs 17.46 crore for Mar'14 quarter.
Performance for the 12 months ended March 2015
Net sales for Swaraj Engines for 12 months ended Mar'15 was down by 11% to Rs 539.70 crore. Sharp decline in overall domestic tractor numbers during the 2nd half of FY 2015 had impacted company's sale for the overall FY'15 where the engine sale was restricted to 64595 units, down by about 13% YoY. Lower absorption of fixed costs and higher CSR expenses resulted in OPM being lower by 110 bps to 13.8%, thus leading a 18% fall in OP to Rs 74.72 crore.
The other income was down by 7% to Rs 16.31 crore. Interest costs is negligible at Rs 0.01 crore and depreciation was up by 45% to Rs 13.20 crore. Thus PBT before EO stood at Rs 77.82 crore, down by 21% y.o.y. There is an EO expense (net) of Rs 1.15 crore 12 months ended Mar'14 ( Rs 2.13 crore of expense on account of laying feeder line by Punjab SEB and income of insurance claim of Rs 98 lakh ) as compared to Nil for 12 months ended Mar'15 period. Thus PBT after EO for the year ended Mar'15 was down by 20% to Rs 77.82 crore. After providing total tax of Rs 25.98 crore, down by 16% y.o.y, PAT for 12 months ended Mar'15 stood at Rs 51.84 crore, down by 23% y.o.y.
Board has recommended a dividend of Rs 33 per share (330%) of face value of Rs 10 each including a special dividend of Rs 18 per share for FY 2014-15.
The promoter shareholding stood at 50.6% and none of them are pledged. Mahindra and Mahindra currently hold 33.2% equity stake in the company.
The scrip is currently trading at Rs 775.
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