- 01 Nov 2022
- ICICIdirect Research
Swaraj Engines reports steady Q2FY23 performance
SWARAJENG - 3405 Change: 87.20 (2.63 %)News:
Net sales for the quarter came in at Rs 385 crore, up 12% YoY. Engine sales volume in Q2FY23 was at 36,792 units, up 4% YoY with blended realizations up 1% QoQ at ~Rs 1.05 lakh/unit. EBITDA for the quarter stood at Rs 51 crore with corresponding EBITDA margins at 13.1%, down 70 bps QoQ. PAT in Q2FY23 stood at Rs 36 crore, down 9% QoQ, however up 6% YoY
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Fall in EBITDA margin was primarily due to rise in RM costs & other expenses by 40 bps & 30 bps respectively on QoQ basis. Engine sales volume rise for the quarter was broadly in line with tractor sales volume growth at its anchor client i.e. M&M (volumes at M&M grew by 5% YoY). Sensing capacity constraints in due course of time the company has announced a fresh brownfield capex wherein it intends to increase its engine manufacturing capacity from 1.5 lakh units to 1.8 lakh units funded by internal accruals
Impact:
Neutral