Swan Defence swings to ₹566 crore net profit in Q2 on provision write-back

Gujarat-based Swan Defence and Heavy Industries Ltd on Monday (October 12) reported a net profit of ₹566.44 crore for the quarter, compared with a loss of ₹0.55 crore in the year-ago period. The profit includes the write-back of excess provisions made in earlier years, as disclosed in the company’s financial results.

Revenue from operations rose 74% year-on-year to ₹69 crore from ₹40 crore. Sequentially, revenue increased 125% from the previous quarter.

However, the company reported an earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of ₹17.02 crore, compared with a loss of ₹7.97 crore in the corresponding quarter last year. The EBITDA margin stood at -24.72%, against -20.15% a year ago.

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On a quarter-on-quarter basis, the EBITDA loss narrowed from ₹21 crore in the previous quarter, while the EBITDA margin improved from -69%.

Shares of Swan Defence and Heavy Industries Ltd ended at ₹2,874.55, up by ₹136.85, or 5.00%, on the BSE.