Swaraj Engines Q2 Results: Stock jumps 14% after 26% revenue growth, margin expansion

Shares of Swaraj Division engine supplier Swaraj Engines Ltd.

surged as much as 14% on Monday, October 12, in response to its September quarter, which showed an improvement across parameters on a year-on-year basis.

Swaraj Engines reported revenue growth of 26% from last year for the September quarter to ₹635.2 crore. The figure during the same quarter last year stood at ₹504 crore.

Net profit for the quarter stood at ₹61 crore, which is 22% higher than the net profit of ₹50 crore that it had reported during the same quarter last year.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹86.45 crore, 27% higher than the ₹68 crore figure reported during the year-ago period. EBITDA margins saw a small expansion to 13.61% from 13.49% during last year's September quarter.

Engine sales volumes during the September quarter stood at 61,216, a growth of nearly 20% in comparison to the 51,164 units it sold during the year-ago quarter.

For the first half of the year, total sales stood at 1,18,019 units, compared to 1,00,204 units last year, owing to steady demand for its products, according to the company.

The company's profit before tax (PBT) and profit after tax (PAT) is the highest ever during a quarter.

Shares of Swaraj Engines, after making an intraday high of ₹3,949.5, are now trading 14.2% higher at ₹3,928.6. With this, the stock has also turned positive on a year-to-date basis.