Swaraj Engines shares surge 12.5%, hit fresh 52-week high after Q1 earnings

Shares of diesel engine maker, Swaraj Engines, rose as much as 12.52% to hit fresh 52-week high of ₹4,688 after it reported strong set of June quarter earnings.

The Mohali-based diesel engine maker reported net profit of ₹50 crore in the first quarter of current financial year, marking an increase of 16% from ₹43 crore in the same period last year. Its revenue from operations rose 16% to ₹484 crore from ₹418 crore.

The company reported stable operating performance as its operating profit also known as earnings before interest, taxes, depreciation and amortisation (EBITDA) advanced 15% to ₹67 crore and its operating profit remained stable at 14%.

The company recorded its highest ever quarterly profit and engine sales in June quarter, Swaraj Engines said in an exchange filing.

"Amid strong demand for engines, Swaraj Engines Limited (SEL) achieved an impressive quarterly performance, setting new records for both engine sales and profits in a single quarter," Swaraj Engines said.

During the quarter Swaraj Engines sold 49,040 engines as against 41,849 engines sold during the same period last year.

"The company's Q1 engine sales registered a growth of 17.2%, reaching 49,040 units compared to last year's sale of 41 ,849 units," Swaraj Engines said.

Swaraj Engines shares have so far this year jumped 59% massively outperforming the BSE SmallCap index which has declined 0.7% year-to-date.

Swaraj Engines Limited was set up in 1985 in Mohali, Punjab and is primarily engaged in the business of supplying engines to the Swaraj Division of Mahindra & Mahindra Ltd. (M&M).

As of 2:22 pm, Swaraj Engines shares traded 9.61% higher at ₹4,569.35, outperforming the BSE SmallCap index which was up 1%.