Swaraj Engines reported a net profit of Rs 55.5 crore for the quarter ended on June 30, up 11% from Rs 50 crore in the corresponding period last year, the company informed in an exchange filing on Monday, July 20
Revenue from operations increased 21.5% year-on-year to Rs 588 crore, compared with Rs 484 crore a year earlier, reflecting healthy business momentum during the quarter.
Operating performance also improved, with the Ebitda rising 14.2% to Rs 76.6 crore, against Rs 67.1 crore in the year-ago period.
The company reported that engine sales for the June quarter registered a growth of 15.8%, reaching 56,803 units compared to 49,040 units sold in the corresponding quarter last fiscal.
“In the backdrop of robust engine demand, Swaraj Engines Limited {SEL} posted yet another strong quarterly financial performance and recorded its highest-ever engine sales and profit for any quarter, “ the company said in the filing.
Also Read: Q1 Results Live Updates: Paytm, UltraTech Cement, Others To Report June Quarter Earnings Today
Margin Slips Despite Higher Operating Profit
While the company posted growth across key financial metrics, profitability came under some pressure at the operating level.
Ebitda margin stood at 13% during the quarter, compared with 13.9% reported a year ago, indicating that higher costs weighed on margins despite stronger revenue growth.
Swaraj Engines Share Price
Swaraj Engines Ltd. shares remained muted on Monday even after the company reported a double-digit rise in profit and revenue for the June quarter.
The stock was trading at Rs 3,675 apiece around 11:50 am today, losing over 33 points from its previous close at Rs 3,709 on the NSE.
Stock Under Pressure Over a Year
Even though the company reported positive quarterly earnings, the shares of the company have been under pressure for a year now.
Shares of Swaraj Engines declined over 13% over a year, when the benchmark index Nifty 50 only lost around 3%.
In the past month, the stock lost over 4%, when the benchmark index gained 0.8%.
The stock traded between Rs 3301 and Rs 4325 apiece during the past 12 months, and is currently trading at a price-to-earnings multiple of 22.9 times.
The market capitalization of the company stood at Rs 4,475 crore as at the end of the previous session.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.