Swaraj Engines' net profit fell 4.9% to Rs 15.84 crore on a 8.5% decline in net sales to Rs 175.13 crore in Q4 March 2020 over Q4 March 2019.
The domestic tractor industry, after witnessing the downtrend during first three quarters of FY 2019-20, had shown some signs of recovery in the fourth quarter. However, sudden announcement of countrywide lockdown from 25th March, 2020 has impacted the overall sales for the quarter. As a result, the domestic tractor industry for the last quarter of fiscal 2020 closed with de-growth of 9%.
Profit before tax (PBT) stood at Rs 21.43 crore in Q4 March 2020, down by 16.8% from Rs 25.76 crore in Q4 March 2019. Total tax expenses declined 38.63% to Rs 5.59 crore during the period under review. Engine sales during the quarter dropped 4.3% to 20,827 units year-on-year (YoY).
Swaraj Engines' net profit fell 13.8% to Rs 71.04 crore on a 11.3% decline in net sales to Rs 773.30 crore in the full year ended on 31 March 2020 as compared to the full year ended on 31 March 2019. PBT stood at Rs 93.07 crore in FY20, down by 26.9% from Rs 127.40 crore in FY19.
Engine sales for FY20 stood at 89,928 units, down 9.75% compared with last year's sale of 99,638 units.
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The company's board recommended a dividend of Rs 25 per share for the year ended March 2020. It has also recommended a special dividend of Rs 15 per share.
The auto maker said that the spread of COVID-19 could affect its business and the impact of the same will depend on future developments that cannot be predicted reliably at this stage. The company said it will closely monitor any material changes to future economic conditions impacting its business.
The firm's operations, which were suspended since 23 March 2020, have now started after obtaining the necessary permissions from the local authorities and will increase its activity level gradually.
Swaraj Engines is engaged in the business of diesel engines, diesel engine components and spare parts and supplies engines to the Swaraj division of Mahindra & Mahindra.
Shares of the diesel engine maker fell 1.24% to settle at Rs 977.75 on Friday (8 May 2020).
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