Swaraj Engines Posts Average Q4 Numbers

Swaraj Engines has posted flattish results for the quarter ended March 2013. The net sales of the company stand at Rs 113.30 crore for Q4FY13 as against Rs 117.14 crore during the same quarter last fiscal, thus witnessing a decline of 3.27%. The company's operating profit stood at Rs 14.19 crore for Q4FY13 as against Rs 16.86 crore for Q4FY12. The net profit remained almost flat to stand at Rs 13.94 crore for Q4FY13 as against Rs 13.42 crore during the same quarter last fiscal.

The company's sales during the quarter stood at 13686 units as compared to 14274 units on a YoY basis. According to the management, the decline in sales was mainly due to the subdued tractor industry scenario. However, there is some good news for investors and shareholders as the company has declared a final dividend of Rs 13 per share for FY13 and considering the company's healthy cash position which stands at Rs 80.72 crore, the company has further recommended a special dividend of Rs 20 per share. This takes the total dividend to Rs 33 per share giving a dividend yield of around 7%.

However, there is little scope for appreciation as far as the financial performance of the company is concerned. The muted demand scenario in the auto sector is clearly evident here. Hence, at this juncture, investors should make full use of the dividends and on the other hand, they should also adopt a cautious approach towards the counter.