Swaraj Engines jump 8% on strong March quarter results and dividend bonus
Actions of Swaraj Engines rallied 8% to Rs 1,471 on BSE in intraday trading on Thursday after the company reported a strong performance in the March quarter (T4FY21) by making its highest quarterly profit ever of 32.56 Rs crores, up 105.6% from the previous year quarter.
The company achieved its best fourth-quarter engine sales of 33,831 units, up 62% year-on-year (year-on-year) and 8% quarter-on-quarter (QoQ). While net operating income grew 74% yoy to Rs 305 crore, earnings before interest, taxes, depreciation and amortization (Ebitda) jumped 97.5% yoy to Rs 46.20 ctrore and EBITDA margins improved 179 basis points to 15.1%. Margins for the quarter were supported by improved gross margins as well as operating leverage benefits.
The company said the impressive growth seen in the tractor industry and the resulting increased demand for engines emerged in the fourth quarter of fiscal 2021, which helped it post a strong quarterly financial performance.
Outraged, Swaraj Engines also announced a total dividend of Rs 69 per share for fiscal year 2020-21 (FY21), including a special dividend of Rs 19 per share, implying a dividend payment of around 90%, with EPS for FY21 at Rs 76.2 per share.
Swaraj Engines is primarily in the business of supplying engines to the Swaraj division of Mahindra & Mahindra (M&M). At 10:05 am, the stock was trading 6% higher at Rs 1,439 on BSE, compared to a 0.56% drop in S&P BSE Sensex. A total of 71,000 equity shares had changed hands on the counter on the NSE and BSE until the time of writing.