Shares of Swaraj Engines Ltd., a subsidiary of Mahindra & Mahindra, experienced a remarkable surge of up to 10% on April 16 following the company’s impressive financial results for the March quarter. The tractor manufacturer reported a substantial 29.4% increase in revenue, totaling ₹454 crore, compared to ₹351 crore in the same period last year. This remarkable growth reflects the company’s strong market position and demand for its products.
Financial Performance Highlights
Swaraj Engines showcased robust financial metrics in its latest quarterly report:
- EBITDA Growth: The company’s Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rose by 29% to reach ₹62 crore.
- EBITDA Margin: The EBITDA margin slightly adjusted from 13.7% to 13.6% year-over-year.
- Net Profit Surge: The net profit saw a substantial increase of 29%, climbing to ₹45 crore from ₹35 crore in the prior year.
Generous Dividend Announcement
In a significant move for shareholders, Swaraj Engines declared an equity dividend of ₹104.50 per share for the financial year ending March 31, 2025. This dividend is a striking 1045% higher than the nominal face value of ₹10. The announcement was confirmed in a filing to the BSE, where the Board expressed confidence in the company’s financial health.
Market Performance and Ownership
The company’s stock reached a 52-week high of ₹4,478.60 on the BSE, reflecting its strong performance in the market. With a market capitalization of ₹5,091.12 crore, Swaraj Engines has seen its share value increase by 39.62% year-to-date (YTD) and 37.9% over the past month. According to recent data, Mahindra & Mahindra maintains a 52.1% ownership stake in Swaraj Engines, further solidifying its influence in the company’s operations.
In conclusion, Swaraj Engines Ltd. continues to demonstrate strong financial growth and shareholder value, making it a noteworthy player in the tractor manufacturing sector. As the company navigates the competitive landscape, its recent achievements signal a promising future ahead.
