Diesel Engine Manufacturer Posts All-Time High PBT of Rs 223.05 crores for FY25 Board Recommends 1045 Per Cent Dividend
The stock is up by 97 per cent from its 52-week low of Rs 2,275 per share and has given multibagger returns of over 350 per cent in 5 years.
Swaraj Engines Limited (SEL) has announced an all-time high Profit Before Tax (PBT) of Rs 223.05 crores for the financial year 2024-25, marking a significant milestone. This achievement was supported by record engine sales volumes, with 45,594 units sold in the fourth quarter (Q4) of fiscal 2025 compared to 35,344 units in the same period last year, and a total of 1,68,820 units sold throughout FY25, up from 1,38,761 units in the previous year, representing a growth of 21.7 per cent. The company's net operating revenue for Q4 FY25 reached Rs 454.16 crores (compared to Rs 350.96 crores), resulting in a PBIT of Rs 56.64 crores (up from Rs 44.10 crores) and a PBT of Rs 61.22 crores (compared to Rs 47.19 crores). For the entire fiscal year FY25, the net operating revenue stood at Rs 1681.89 crores (against Rs 1419.24 crores), with a Profit After Tax of Rs 165.98 crores (compared to Rs 137.87 crores), showing a growth of 20.4 per cent.
In light of this robust performance, the Board of Directors has recommended an unprecedented 1045 per cent dividend, equivalent to Rs 104.50 per share, a significant increase from the Rs 95 dividend of the previous year. To further capitalise on the sustained demand and secure future growth, the board has also approved an engine capacity expansion plan, increasing the current capacity from 195,000 units to 240,000 units per annum. This expansion, financed through internal funds, will also enable the company to upgrade its manufacturing technology to meet future technological requirements. The audited financial results for the fourth quarter and the year ended 31st March 2025 were approved on 1st April 2025.
DSIJ’s 'Tiny Treasure' service recommends researched Small-Cap stocks with Inherent Growth Potential. If this interests you, download the service details here.
Swaraj Engines Ltd., established in 1989, specialises in the manufacturing of diesel engines specifically designed for tractors, ranging from 22 HP to above 65 HP, along with hi-tech engine components. Originally incorporated in 1985 as a joint venture between Punjab Tractors and Kirloskar Oil Engines Ltd., with Kirloskar providing the technical expertise for 'SWARAJ' tractor engines, the company's trajectory shifted in 2007 when Mahindra & Mahindra acquired a majority stake in Punjab Tractors and subsequently integrated the Swaraj brand into its Farm Division.
The company has a market cap of over Rs 5,000 crore with an ROE of 42 per cent and an ROCE of 57 per cent. The stock is up by 97 per cent from its 52-week low of Rs 2,275 per share and has given multibagger returns of over 350 per cent in 5 years. Investors should keep an eye on this small-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.