Swan Energy's stock slides 5% as net profit takes beating in Q4 show

Shares of Swan Energy fell 4.9 per cent at Rs 574.75 per share on the BSE in Friday’s intraday deals. This came after the company delivered a double digit drop in its net profits for January-March quarter of fiscal year 2023-24 (Q4FY24). 

The company reported a decline in profit by 10.5 per cent year on year (Y-o-Y) in Q4FY24 to Rs 55.5 crore as against Rs 62.1 crore in Q4FY23. However, its revenues saw a significant spike of 50 per cent to Rs 1,407 crore from Rs 937 crore in Q4FY23. 

On a full year basis, the company’s consolidated revenue surged by 251.99 per cent YoY to Rs 5,100 crore In FY24 as against Rs 1,448 crore in FY23. The company also registered a net profit of Rs 585 crore versus a net loss of Rs 61 crore in FY23. 

FY24’s earning per share (EPS) soared to Rs 20.57, marking an uptick from Rs -2.52 in FY23. 

Chetan Selarka, CFO, Swan Energy said, ‘‘FY24 has been a year of developing a robust foundation of growth across all business verticals. Following a successful fundraising through QIP, we have made substantial progress in debt reduction in the company including subsidiaries.”

Selarka further said that the company formally took the management control of RNEL from NCLT and the issuances of shares are in process. The company has also initiated the process of revamping the RNEL shipyard infrastructure facilities to make it operational as well as building a proficient leadership team, he added. 

At 11:25 AM; the shares of Swan Energy were trading 4.99 per cent lower at 574.75 per share on the BSE. By comparison the S&P BSE Sensex soared 0.19 per cent. The stock of the company is trading at a price earnings multiple of 3,592.19 times.

Swan Group has a presence in the textile, real estate, oil and gas, and petrochemical sectors. Additionally, the recent acquisition of RNEL (shipyard) marks its entry into the shipbuilding, ship repairing, and heavy fabrication segments.