Earnings season has officially begun on Dalal Street, with numerous companies unveiling their financial results for the quarter and year ending March 31, 2025. Among these announcements, the spotlight is on the consistent dividend payouts from select firms, attracting the interest of savvy investors.
Spotlight on Swaraj Engines Ltd: A Consistent Dividend Performer
One standout in this earnings season is Swaraj Engines Ltd (SEL), a small-cap company noted for its reliable dividend history. With a promising dividend yield of 2.30%, SEL has consistently rewarded its shareholders with dividends every year since 2008.
Swaraj Engines primarily focuses on manufacturing diesel engines for the iconic Swaraj tractors, produced by Mahindra and Mahindra (M&M). The engines range from 20 HP to 65 HP, and since it began operations in 1989, SEL has delivered an impressive 1.59 million engines for Swaraj tractors.
Impressive Financial Results and Record Dividend Declaration
Recently, SEL released its Q4FY25 financial results, revealing a record dividend of Rs 104.50 per share for the fiscal year ending March 31, 2025. This dividend is significant, especially considering M&M, which holds a 52.12% stake in SEL (equating to 63.31 lakh shares), is poised to receive approximately Rs 66.16 crore as a dividend payout.
On a consolidated level, SEL reported a remarkable 29% year-on-year increase in net profits, totaling Rs 45.4 crore for Q4FY25. Revenue also saw a substantial rise, increasing by 29.4% year-on-year to reach Rs 454 crore, while EBITDA stood at Rs 61.9 crore, reflecting a 28.7% growth from the previous year.
Key Dates for Shareholders and Future Plans
The record date for determining eligible shareholders for the dividend, pending approval, is set for June 27, 2025. Additionally, the company’s Annual General Meeting (AGM) is scheduled for July 15, 2025.
Alongside the dividend news, SEL has also announced an ambitious engine capacity expansion plan. The production capacity is set to grow from the current 195,000 units annually to 240,000 units to meet increasing demand. This expansion will require an estimated investment of Rs 220 crore, fully funded through internal accruals and surplus funds.
SEL’s Stock Performance: A Multibagger Journey
Swaraj Engines, as a small-cap stock, has delivered remarkable returns over the years. In the past three years, the stock has surged by 190.16%. Over the last year, it has gained 70.78%, and since the beginning of this year, it has risen by 40.11%.
Conclusion
SEL stands out as a reliable investment option for those seeking consistent dividends and promising growth. With its strong financial performance and strategic expansion plans, the company is well-positioned for the future.
Disclaimer: This article is intended for informational purposes only and does not constitute investment advice.
For more insights and stock recommendations, check out Dalal Street Investment Journal (DSIJ), a trusted name in Indian financial media for nearly four decades.
