SWARAJ ENGINES = FIRST QUARTER (Q1 FY 2011) = RESULTS = VERY GOOD IMPROVEMENT = FY 11 PROMISING

SWARAJ ENGINES LIMITED

Q1 FY2011 RESULTS

COMPARISON

SWARAJ ENGINES LTD  has reported very good improvement in its results for the first quarter. The results are compared herein with the previous quarter (Q4 FY 2010), with the corresponding quarter (Q! FY2010) and  proportionately (Q1 FY2010 x 4) with the full year of FY2010.

Net Sales at Rs.84.39 cr is up by 11.3% from previous qtr (Rs.75.84 cr) – up by 25.7% from the corresponding qtr (Rs.67.11 cr)  - and also up proportionately by 20.4% from FY2010 (Rs.280.40 Cr).

Profit from Operations at Rs.13.78 Cr – is up by 20% from previous qtr (Rs.11.48 Cr) – up by 24.5% from corresponding Qtr (Rs.11.07 Cr)  - and proportionately up by 23.2% from FY 2010 (Rs.44.73 Cr).

Net Profit at Rs.10.69 Cr is up by 16.1% from previous qtr (Rs.9.21 Cr) – up by 10.1% from corresponding Qtr (Rs.9.71 cr) – and also proportionately up by 14.5% from FY2010 (Rs.37.35 Cr).

Basic EPS is Rs.8.61 against a face value of Rs.10 – compared to Rs.7.42 in previous Qtr (+16%) – and compared to Rs.7.82 in corresponding Qtr (+10.1%) – and compared to Rs.30.08 in FY2010 (+14.5% proportionately).

PE Ratio : The current Market price is Rs.428. At current rate of Q’EPS ,annual EPS may be around Rs34-Rs35. On this, PE ratio works out to 12.59.

The sales and profitability of Swaraj engines is closely linked with the Automobile sector – and specially with the fortunes of Mahindra and Mahindra, its parent company. During the quarter, Swaraj Engines' dispatches to Mahindra & Mahindra totalled 11,428 engines, compared to 9,366 engines in the first quarter of the last fiscal, translating into a 22 per cent increase. In fact, close to 90% of SEL's revenue comes from M&M  whose senior Management persons are on the board of Swaraj Engines.   Margins have stayed in the range of 10-13%.  M&M seems to have further plans for SEL, which augurs well for the company.

RESULTS IN FIGURES :

SWARAJ ENGINES	Jun-10	Mar-10	dif%1	Jun-09	dif%2	FY10	dif%3
Net Sales	8439	7584	11.3	6711	25.7	28040	20.4
Other Optg Income	51	52	-1.9	52	-1.9	204	0
SIT&WIP	134	247	-45.7	-29	-562	-261	-305.4
Raw Materials	6237	5451	14.4	5100	22.3	21290	17.2
Employees Cost	398	429	-7.2	300	32.7	1436	10.9
Depreciation	105	125	-16	119	-11.8	484	-13.2
Other Exp.	238	236	0.8	166	43.4	822	15.8
Total Exp	7112	6488	9.6	5656	25.7	23771	19.7
Profit.Operations	1378	1148	20	1107	24.5	4473	23.2
Other Income	58	57	1.8	185	-68.6	418	-44.5
PB I &EI	1436	1205	19.2	1292	11.1	4891	17.4
Interest	-129	-109	18.3	-179	-27.9	-580	-11
P A I B B EI	1565	1314	19.1	1471	6.4	5471	14.4
P B T	1565	1314	19.1	1471	6.4	5471	14.4
Tax expense	496	393	26.2	500	-0.8	1736	14.3
P A T	1069	921	16.1	971	10.1	3735	14.5
Net Profit	1069	921	16.1	971	10.1
Dividend %	-	80		-		80
Face Value	10	10	0	10	0	10
Paid Up Equity	1242	1242	0	1242	0	1242
Reserves	-	-		-		11032
Basic EPS	8.61	7.42	16	7.82	10.1	30.08	14.5
Public holding%	49.4	49.4	0	49.4	0	49.4

ANNOUNCEMENTS

TO THE EXCHANGE

03-08-2010        Swaraj Engines Limited has informed the Exchange regarding a press release dated August 03, 2010, titled "Swaraj Engines operating Profit up 21%".

25-06-2010        Swaraj Engines Limited has informed the Exchange that the Company has announced Book Closure from July 16, 2010 to July 22, 2010 (both days inclusive) for the purpose of payment of dividend @ 80% (Rs. 8.00 per share). The same will be paid after the approval by the shareholders of the Company in the forthcoming Annual General Meeting.   

06-05-2010        Swaraj Engines Limited has informed the Exchange regarding a press release dated May 06, 2010, titled "SEL's net profit jumps 76% declares 80% dividend".

06-05-2010        Swaraj Engines Limited has informed the Exchange that the Board of Directors at its Meeting held on May 06, 2010 have recommended a dividend of Rs.8.00 per equity share Rs. 10/- each subject to the approval of the shareholders at the Annual General Meeting.

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