SWARAJ ENGINES Announces Quarterly Results (2QFY21); Net Profit Up 6.8%

Wed, 28 Oct

SWARAJ ENGINES has announced its results for the quarter ended September 2020. Here is a detailed performance review of the same:

SWARAJ ENGINES Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-19*	3 Jun-20*	3 Sep-20*	QoQ Change	YoY Change
Net Sales	Rs m	2,227	1,170	2,923	149.8%	31.2%
Other income	Rs m	34	21	21	1.0%	-39.5%
Turnover	Rs m	2,262	1,191	2,944	147.3%	30.2%
Expenses	Rs m	1,927	1,041	2,523	142.3%	30.9%
Gross profit	Rs m	300	129	400	210.6%	33.3%
Depreciation	Rs m	53	42	56	33.3%	5.6%
Interest	Rs m	0	0	0	0.0%	-100.0%
Profit before tax	Rs m	281	107	364	240.2%	29.7%
Tax	Rs m	27	29	93	224.7%	245.2%
Profit after tax	Rs m	254	78	271	245.9%	6.8%
Gross profit margin	%	13.5	11.0	13.7
Effective tax rate	%	9.6	26.8	25.6
Net profit margin	%	11.2	6.6	9.2

Year-on-Year Performance:

• The company's operating income during the quarter grew 31.2% on a year-on-year (YoY) basis. The expenses were up by 30.9% YoY during the same period.
• The company's operating profit increased by 33.3% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 13.7% in 2QFY21 as against 13.5% in 2QFY20.
• Depreciation charges increased by 5.6% and finance costs declined by 100.0% YoY, respectively.
• Other income declined by 39.5% YoY during the quarter.
• Net profit for the quarter increased by 6.8% YoY. Net profit margins during the quarter declined from 11.2% in 2QFY20 to 9.2% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 149.8% on a quarter-on-quarter (QoQ) basis. The expenses were up by 142.3% QoQ during the same period.
• The company's operating profit increased by 210.6% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 13.7% in 2QFY21 as against 11.0% in 1QFY20.
• Net profit for the quarter increased by 245.9% QoQ, while net profit margins increased from 6.6% in 1QFY20 to 9.2% in 2QFY21.

To see how SWARAJ ENGINES has performed over the last eight quarters,please visit here.

Free Signup: Learn how India is poised to emerge as a global power

SWARAJ ENGINES Share Price Performance

Over the last one year, SWARAJ ENGINES share price has moved up from Rs 1,139.9 to Rs 1,460.0, registering a Gain of Rs 320.2 or around 28.1%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 14,469.1 (up 0.5%). Over the last one year it has moved down from 18,377.2 to 14,469.1, a gain of 3,908 points (down 21.3%).

Overall, the S&P BSE SENSEX is up 2.9% over the year.

Current Valuations

At the current price of Rs 1,460.0, the price to earnings (P/E) ratio of SWARAJ ENGINES stands at 27.8 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 7.4 times.