Mahindra Group stock declares ₹92 per share dividend, 60% profit growth in Q4

Swaraj Engines is a small cap Mahindra group company recorded a market cap of ₹2,112.84 Cr during today's closing. The company is equipped with highly productive & precise quality analyzing machines and it is also manufacturing hi-tech engine components. The stock ended today on a green note up by 5% after it declares 920% dividend for its eligible shareholders and 59.9% PAT growth in FY23.

“The Board, while approving the annual accounts, has recommended an equity dividend of 920% (Rs.92 per share) for the financial year ended 31st March, 2023,” said Swaraj Engines in a stock exchange filing.

“The Register of Members and Share Transfer Books of the Company will remain closed from Saturday, 8th July, 2023 to Friday, 14th July, 2023 (both days inclusive) for the purpose of determining the Members eligible to receive the dividend, if declared by the shareholders at the ensuing Annual General Meeting ("AGM"). The dividend, if declared at the AGM, will be paid within a week from the conclusion of the AGM,” informed Swaraj Engines to the stock exchanges.

Owing to the capacity enhancement, Swaraj Engines said in a stock exchange filing that “The Board earlier in October 22 had approved the capacity enhancement from 1,50,000 engines to 1,80,000 engines per annum. Considering the expected future engine demand in the coming years, the Board today has accorded its approval to further enhance the engine capacity to 1,95,000 units per annum. The total projected outlay for the same would be financed through internal generations I surplus available with the Company.”

The company recorded revenue from operations of ₹359.79 Cr during Q4FY23, up by 48.45% YoY from ₹242.35 Cr in Q4FY22. The company's net income stood at ₹363.49 Cr during the quarter ended March 2023 as against ₹244.64 Cr during the year-ago quarter. The company’s net expenses stood at Rs 316.41 Cr during the quarter under review as against ₹215.46 Cr during the year-ago quarter. Swaraj Engines said its net profit reached Rs 34.96 Cr, up by 59.92% YoY from ₹21.86 Cr during the quarter ended March 2022.

The company's Q4 engine sales rose by 45.6% to 34,841 units from 23,937 units sold during the same period last year. Due to the aforementioned, the net operating revenue for the quarter rose by 48.5% to Rs. 359.79 crores from Rs. 242.35 crores. Operating Profit (EBITDA) grew by 54.3% to Rs. 47.98 crores from Rs. 31.10 crores in the prior year. At 1,37,005, the number of engines sold represented a 17.3% growth over the 1,16,811 units sold the previous year. In contrast to the previous financial year's net operating revenue of Rs. 1138.15 Cr., the net operating revenue for FY23 was Rs. 1421.82 Cr.

The shares of Swaraj Engines closed today on the NSE at ₹1,740 apiece level, up by 4.56% from the previous close of ₹1,664.05. The stock touched a 52-week-high of ₹1,962.00 on (21-Sep-2022) and a 52-week-low of ₹1,383.15 on (27-Apr-2022).