Swaraj Engines gains after Q1 PAT spurts to Rs 34 cr

Swaraj Engines rose 1.35% to Rs 1,798 after the company's standalone net profit soared 329.20% to Rs 33.65 crore on 169% surge in revenue from operations to Rs 314.71 crore in Q1 June 2021 over Q1 June 2020.

The company said that its quarterly profit is the highest ever for any quarter. Profit before tax jumped 321.56% to Rs 45.15 crore in Q1 FY21 as against Rs 10.71 crore in Q1 FY20.

Swaraj Engines reported its ever best Q1 performance in terms of achieving highest ever first quarter engine sale of 33,747 units. The volumes grew by 145% compared with a sale of 13,756 units during the corresponding quarter of FY 2021. The figures are not fully comparable with last year's Q1 engine sales which were impacted due to lockdowns, the company added.

The increase in the commodity prices has impacted the contribution margin, however, with total operating expenses restricted at 7.5% of the net operating revenue, the company posted a healthier operating margin of 15%.

Swaraj Engines is in the business of supplying engines to the Swaraj Division of Mahindra & Mahindra.

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