Swaraj Engines Ltd.

Main Activities: Engine, Turbine, and Power Transmission Equipment Manufacturing

SE Please check the full coverage of E information what EMIS can offer you. SAMPLE face Lin E book kedIn mail Company Information Full Swaraj Engines name Ltd. Status: Listed Legal Form: Public Limited Company Operational Status: Operational ISIN CODE : INE277A01016 Financial Auditors: Davinder S Jaaj & Co (2011) Incorporation Date: September 24, 1985 Total Employees: 515

Legal Address Phase- I V, Industrial Area,, S A S Nagar, ; Mohali; Punjab; 160055

Company Description Swaraj Engines Limited (SEL) is an India-based company. The Company was set up to manufacture engines for Punjab Tractors Ltd. (PTL). SEL has also been a supplier of hi-tech engine components to Swaraj Mazda Ltd. (SML). SEL has supplied around 3,57,000 engines for fitment into Swaraj tractors. SEL's engine business constitutes some 93% of Company's product revenue. Balance 7% represents value of hi-tech engine components being supplied to SML for assembly of commercial vehicle engines. Company Analysis According to the Individual - Audited financial statement for the Year of 2011, total net operating revenues increased with 28.66%, from INR 286.62 tens of millions to INR 368.77 tens of millions. Operating result increased from INR 49.57 tens of millions to INR 68.85 tens of millions which means 38.89% change. The results of the period increased 17.56% reaching INR 43.91 tens of millions at the end of the period against INR 37.35 tens of millions last year. Return on equity (Net income/Total equity) went from 30.43% to 28.85%, the Return On Asset (Net income / Total Asset) went from 29.78% to 28.85% and the Net Profit Margin (Net Income/Net Sales) went from 13.03% to 11.91% when compared to the same period of last year. The Debt to Equity Ratio (Total Liabilities/Equity) was 100.00% compared to 102.18% of last year. Finally, the Current Ratio (Current Assets/Current Liabilities) went from 2.04 to 3.10 when compared to the previous year.

Key Board of Directors

Members of the Board

Mr. Rakesh Jhunjhunwala - Chairman Mr. C. Y. Pal - Vice Chairman Mr. Ninad Karpe - Managing Director & CEO Mr. Utpal Sheth Mr. Asit Koticha Mr. Rajiv Agarwal Mr. Ramesh S. Damani Mr. Yash Mahajan Mr. Vijay Aggarwal Mr. Walter Saldanha
Executives G P Gupta Bhishwambhar Mishra Hardeep Singh S C Bhargava T N Kapoor M ore

Chairman Vice Chairman Non Executive Independent Director Non Executive Independent Director Non Executive Independent Director

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FCC Rico Ltd. Tata Cummins Ltd Turbo Energy Ltd. Vestas Wind Technology India Pvt. Ltd.

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FULL COMPANY PROFILE

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SELECT CURRENCY Figures in: INR | EUR | USD 2012 Y (non-cons) NonAudited Accord Fintech Tens of Millions) 2012 Q3C (non-cons) NonAudited Dion Global Solutions AsianCERC Tens of Millions

Unit Balance Sheet

Shareholders Equity

12

12

* All the accounts are in INR. Income Statement Total Revenues Operational Profit (Loss) Net (Loss) Profit 460 81 330

52

39

* All the accounts are in INR. Ratios Profitability Ratios Return on Equity (ROE) Annualised Return on Equity (ROE) Return on Sales (ROS) Gross Profit Margin Valuation figures and ratios Earning Before Interests and Taxes (EBIT) Trend Ratios Revenue Trend Net Income Trend Operating Income Trend 124.39% 124.97% 0% 125.4% 68 425.28% 425.28% 102.73% 18.18%

Swaraj Engines Ltd

BSE: 500407 | NSE: SWARAJENG | ISIN: INE277A01016 Market Cap: [Rs.Cr.] 501 | Face Value: [Rs.] 10 Industry: Engines Company Profile
Swaraj Engines Ltd, a Joint Venture between Punjab Tractors Ltd and Kirloskar Engines was set up primarily to manufacture engines for supply to Punjab Tractors. The Company was incorporated in Sep 85 under the Management Control of Punjab Tractors to Manufacture and market diesel engines ranging from 15hp to 80hp. Swaraj Engines Ltd (SEL) supplies 5 types of Engines from 20HP range to 50HP range to Punjab Tractors Ltd(PTL). In addition to engines, the Company also manufactures high-tech engine components for Swaraj Mazda. Since the Companies Operations in 1989-90, SEL has supplied over 2,40,000 engines for fitment into Swaraj Tractors being produced and sold by PTL. The Companies initial public offer and allotment was in 1989. The Company came out with a Public Issue aggregating to Rs.0.89 crores to part-finance Rs.4.5 crore project to manufacture 16,000 diesel engines. The Technology was provided by KOEL (Kirloskar Oil Engines Ltd). In the First year of full operations, 1989-90 the company declared its maiden dividend of 20% The Company has its plant at SAS Nagar Ropar Punjab. During 1996-2000 the Company expanded engine assembly capacity to 36,000 per annum on 2 shift basis. SEL also commissioned Matching Shop facilities for Manufacturing high-tech engine components. In the year 1999, Swaraj Engines also set-up facilities for Manufacturing high-tech engine components for Swaraj Mazda Vehicles such as Cylinder block and cylinder head. During 2002-2003 Punjab State Industrial Development Corporation (PSIDC) initiated a disinvestments process covering entire Equity stake of 23.49% held by it in Punjab Tractors Ltd(Promoters of the Company with 33% stake). CDC Financial Services(Mauritius) Ltd (CDCFS) was the Successful bidder for acquiring PSIDC's stake of 1,42,74,000 shares @153/- per share. As per SEBI Guidelines, CDCFS & CDC-PTL made a public announcement regarding an offer to the public to buy upto 20% of Company's total paid up equity i.e 8,27,988 shares @ Rs. 205/- per share. The Board of Directors in their meeting held on June 17, 2005 announched bonus issue in the ratio of 2:1 by Capitalization of General Reserve

Key Information
Key Executives:

G P Gupta , Chairman Pawan Goenka , Director Bishwambhar Mishra , Vice Chairman T N Kapoor , Director
Company Head Office / Quarters:

Phase

IV

Industrial

SAS Mohali, Punjab-160055 Phone : Fax E-mail : Web : http://www.swarajenterprise.com

Registrars:

area, Nagar,

91-172-2271620/2271621/227162 :

-27 91-172-2271307 grewal.maninder@swarajenterpricse.com Ltd Floor Are

MCS F-65 Okhla Phase-I New Delhi-110020 1st Industrial

Swaraj Tractor
Swaraj is name that has become synonymous with the tractors because of their long term expertise in the same field. They have been manufacturing the most technically encouraged tractors that serves the need of its buyers in commercial as well as the agricultural section. Ads by Google Moving to UK? USA to UK, 24x7 Fast Quotes Professional Door-2-Door Relocation www.UniRelo.com Bank Jobs for Freshers 100s of New Banking Openings Submit CV to Apply MonsterIndia.com/Jobs New Nano 2012 is here. India's most fuel efficient petrol car. Chale Chalo India. Feel It! tatanano.inservices.tatamotors.com

It comes in different variants thus giving a different choices to the buyers to choose from:

Variants

Swaraj 722 Super

Swaraj 724 FE Swaraj 733 FE Swaraj 735 FE Swaraj 744 FE Swaraj 834 FE Swaraj 855

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Swaraj 722 Super is a 4 stroke, direct injection diesel run tractor with a capacity of 1425cc. The tractor has a water cooled cooling system and comes with 8 forward and 2 reverse speed gears with high and low selector levels. Swaraj 722 super is equipped with self energizing, water sealed disc brakes along with parking brake. The tractor is featured with a single drop arm steering with a centrally located horn switch on the steering wheel. The vehicle has a shorter turning radius and is very economical in its operation. Featured Components

Tractor meter with direction indicators Fuel gauge Ammeter Water temperature gauge Oil pressure gauge Live hydraulics Alternator for powerful headlights and longer battery life 3-stage bigger Air Cleaner Sliding type PU seat Water separator in fuel line

Lockable battery near starter

View Technical Specification of Swaraj 722 Super

Swaraj

724

FE

Swaraj 724 FE is a 4 stroke, direct injection diesel run tractor with a capacity of 1728cc and has a water cooled cooling system. The tractor has 8 forward and 2 reverse speed gears with high and low selector levels. Swaraj 724 FE is equipped with self energizing, water sealed disc brakes along with parking brake. The tractor is featured with a single drop arm steering with a centrally located horn switch on the steering wheel. This vehicle is very economical in operations and has a shorter turning radius. Featured Components

Tractor meter with direction indicators Fuel gauge Ammeter Water temperature gauge Oil pressure gauge Lockable battery near starter Telescopic stabilizers bars Live hydraulics Alternator for powerful headlights and longer battery life Water separator in fuel line

View Technical Specification of Swaraj 724 FE

Swaraj

733

FE

Swaraj 733 FE is a 4 stroke, direct injection diesel run tractor with a capacity of 2204cc. The tractor has 8 forward and 2 reverse speed gears with high and low selector levels. Swaraj 733 FE is equipped with self energizing, water sealed disc brakes along with parking brake. The tractor is featured with a single drop arm steering with centrally located horn switch on the steering wheel. This vehicle has a shorter turning radius and is very fuel efficient due to its low diesel consumption. Featured Components

Tractor meter with direction indicators Fuel gauge Ammeter Water temperature gauge

Oil pressure gauge Lockable battery near starter Telescopic stabilizers bars Most modern and high technology air cooler Live hydraulics Alternator for powerful headlights and battery durability Water separator in fuel line

View Technical Specification of Swaraj 733 FE

Swaraj

735

FE

Swaraj 735 FE is a 4 stroke, direct injection diesel run tractor with a capacity of 2592cc. The tractor has a water cooled cooling system and has 8 forward and 2 reverse speed gears with high and low selector levels. Swaraj 735 FE is equipped with self energizing, water sealed disc brakes with parking brake. The tractor further featured with a single drop arm steering with centrally located horn switch on the steering wheel. Featured Components

Tractor meter with direction indicators Fuel gauge Ammeter Water temperature gauge Oil pressure gauge Lockable battery near starter Live hydraulics Water separator in fuel line

View Technical Specification of Swaraj 735 FE

Swaraj

744

FE

Swaraj 744 FE is a 4 stroke, direct injection diesel run tractor with a capacity of 3136cc. The tractor has 8 forward and 2 reverse speed gears with high and low selector levels. Swaraj 744 FE is equipped with self energizing, water sealed disc brakes with parking brake. The tractor is featured with a single drop arm steering with a centrally located horn switch on the steering wheel. Featured Components

Tractor meter with direction indicators Fuel gauge

Ammeter Water temperature gauge Oil pressure gauge Lockable battery near starter

View Technical Specification of Swaraj 744 FE

Swaraj

834

FE

Swaraj 834 FE is a 4 stroke, direct injection diesel run tractor with a capacity of 2474 cc. The tractor has 8 forward and 2 reverse speed gears with high and low selector levels. Swaraj 834 FE is equipped with self energizing, water sealed disc brakes along with the parking brake. The tractor is also featured with a single drop arm steering with a centrally located horn switch on the steering wheel. Featured Components

Tractor meter with direction indicators Fuel gauge Ammeter Water temperature gauge Oil pressure gauge Lockable battery near starter Water separator in fuel line Live hydraulics

View Technical Specification of Swaraj 834 FE

Swaraj

855

Swaraj 855 is a 4 stroke, direct injection diesel engined tractor ideal for paddy cultivation and suitable for drilling operations with Compressor. This is a 3308cc tractor with 8 forward and 2 reverse speed gears with high and low selector levels. Swaraj 855 has a self energizing, water sealed disc brakes with parking brake for extra safety and also has an option of an oil immersed disc brake. The tractor is equipped with a single drop arm steering along with an option of a power steering. Featured Components

Tractor meter with direction indicators Fuel gauge Ammeter Water temperature gauge

Oil pressure gauge Lockable battery near starter Higher capacity diesel tank of 60 liters

View Technical Specification of Swaraj 855

4} Company History - Punj. Tractors

1970 - The Company was incorporated on 27th June, at Chandigarh, Haryana. The Company Manufacture agricultural tractors, power tillers, agricultural machinery and implements, forklifts, trucks and sophisticated engineering equipment. The tractors are marketed under the brand name "SWARAJ". The Company was promoted by Punjab State Industrial Development Corporation Ltd. - The project is based on the know-how and technology developed by Central Technical Engineering Resereach Institute (CMERI), Durgapur and licensed through the National Research Development Corporation (NRDC), New Delhi. - 4,52,000 No. of equity shares subscribed for by promoters, etc. 85,000 No. of Equity Shares allotted to Indian Govt. 3,000 pref. and 5,63,000 No. of Equity shares offered to the public in August 1972. 1979 2,550 forfeited equity shares either reissued or forfeiture annulled.

1980 - Authorised capital increased. 4,40,000 bonus equity shares issued in the prop. 2:5. 1983 - The Company entered into technical collaboration agreement with Komatsu Forklift Co. Ltd., of Japan for the manufacture of diesel electric Komatsu forklifts. 1985

1986 1987

15,016

Pref.

shares

redeemed.

14,984-9.5%

pref.

shares

redeemed

on

7th

November,

1987.

- In the second quarter, of the year tractor plant had to be locked out from 21st March, due to labour unrest. This lock-out was lifted on 3rd June. 1989 - The Company embarked on an expansion programme involving an outlay of Rs 36 crores during the next 2-3 years which comprises the following: (i) Raising tractor capacity to 22,000 nos.; (ii) Raising capacities in the foundry and harvester combine divisions; (iii) Setting up separate facilities for R&D and spare parts and (iv) Reinforcing market presence in key locations in the country. This expansion was to be financed through internal generation, additional equity capital and term loans. - In 1987, 15,40,000 rights shares issued (prem. Rs 50 per shares; prop. 1:1). Another 77,000 shares offered to employees (prem. Rs 50 per shares). All were taken up. 1990 - 15,78,500 Rights equity shares issued (prem. Rs 60 per share; prop, 1:2). Additional 2,36,775 shares allotted to retain oversubscription. Another 90,700 shares allotted to employees including 11,800 shares to retain oversubscription (prem. Rs 60 per shares). 1992 1993 The Company had set up a separate division to promote exports. 50,62,975 bonus equity shares issued in prop. 1:1.

1996 - The Company proposed to expand tractor capacity to 60,000 nos. per annum. - The Company entered into a joint venture agreement with Swaraj Mazda Ltd. (SML). Mazda Motor Corporation and Sumitomo Corporation of Japan. 101,25,950 shares issued as bonus in prop. 1:1.

1997 - The company has an installed capacity for 36,000 units. And it is currently expanding it to 60,000 tractors (in two-shift basis) by March 1999. - As the company issued a 1:1 bonus during the year, allotted last February, the dividend works out to 160 per cent on the pre-bonus equity, thus improving on its last year's figure of 125 per cent. 1998 - The company is the third-largest manufacturer of tractors in India and the market leader in the below-20 hp and above-50 hp tractor segments. - The company launched a single-cylinder variant of the 25-hp model as well as a doublecylinder model in the 35-hp class while it launched a 48-hp model in October, 1999, Productdesign and customization have been the 2 pillar of Punjab Tractors' success. - The company also has a strong distribution network in the northern market. - PTL has introduced tractors based on indigenous technology and they have been extremely successful in the Indian markets. - The company also has manufacturing facilities for fork-lifts, harvester combines and tractors at Hoshiarpur, which is close to its Ropar plant. 1999 - Punjab Tractors is a leading player in the tractor industry with "Swaraj" brand name. - The company has a strong financial background and a well-established presence in the North. 2000 - The Company has recommended a bonus issue of two shares for every one share held. 2001 -PTL has posted a net profit of Rs.112.52cr as against the same period of last year. 2002 -Punjab Tractors Ltd, to expand its product range with six models by lauching 3 more in different segments in next two years. -Mahindra & Mahindra expresses its interest to buy the stake in Punjab Tractors.

-Punjab Tractors Ltd has facinated expression of Interest from 21 merchant bankers including DSP Merill Lynch, Lazard India, Earnst and Young etc. -Punjab Tractor's Board of Directors have re-inducted the company's vice chairman and managing director, Yash mahajan for another two years. 2003 -The disinvestment of Rs.1000cr reached the deadline for transfer of management control postbuyout. -Punjab Government winds up the offload of its controlling equity in Punjab Tractors. -The disinvestment of Punjab Tractors has hit a roadblock with Financia Institutions refusing to accept the Punjab Government's request to amend the articles of assiciation. -South Asia Regional Fund would play a crucial role in deciding majority control of punjab Tractors, post disinvestment, merchant banking. -Punjab Tractors posted a net profit of Rs.57million as compared to Rs.140 million. -SEBI has called for trading data from NSE & BSE, and has started interferring into the price movements of Punjab Tractors Scrip. -Government has provided permission to 17 Foreign Direct Investment proposals to invest worth Rs.588.54cr, which includes CDC-PTL Holdings' proposal to invest money to acquire stakes. -Foreign Investment Promotion Board has given permission for CDC-PTL Holdings Ltd., to pick up 23.49% stake in Punjab Tractors Ltd. -Punjab Tractors ties up with Corporation Bank and Bajaj Tempo Ltd for financing tractors bought by farmers. 2004 -Industrial Development Bank of India (IDBI) sells 1,224,695 shares amounting to 2.02% of the paid up capital of the company, reduces its stake in the company to 5.27% -Ties -Bank up of with Bank India of inks Baroda pact for financing with tractor Punjab purchases Tractors

-Vijaya Bank has entered into a Memorandum of Understanding with Punjab Tractors Limited with a view to help farmers purchase tractors on softer term loans

2005 -SBT -PD 2006 -Pnjab Tractors Ltd. has informed Dr. S.Narayan, former Revenue Secretary, Govt. of India and Shri Sachit Jain, Executive Director, Vardhman Group have been co-opted as Additional Directors of the Company. -Punjab Tractors Ltd has informed that at the meeting of Board of Directors of the Company held on October 19, 2006, Dr S Narayan, former Revenue Secretary, Govt of India and Shri Sachit Jain, Executive Director, Vardhman Group have been co-opted as Additional Directors of the Company. 2007-Punjab Tractors Ltd has appointed Shri. Anjanikumar Choudhari as Chairman of the Company. inks Narang pact is with new Punjab Tractors of on Jan Punjab 18,2005 Tractors

chairman

6}
Home > Outlook Arena > Views On News > May 11, 2002 - Punjab Tractors: The Indian Swaraj

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Punjab Tractors: The Indian Swaraj

1
If one were to look at the
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broader trend on the bourses over the last six months, apart from software sector, auto stocks have been buzzing with activity. But within the auto sector, tractor manufacturers have been languishing at the current levels for quite sometime. Punjab Tractors in one of them. Promoted by Punjab State Industrial Development Corporation (PSIDC) in 1971, Punjab Tractors Ltd. (PTRA) has come a long way. Despite being a state-managed company, its continuous focus on research and development and successful new product introductions have enabled it to become the second largest manufacturer of tractors in India. Over the years, PTRA has consistently increasing its share in the overall pie. The companys market share for the year ended March 31, 2002 stood at 20% as compared to 19% last year (13% in FY94).

The current year performance of the company was lacklustre. But the results have to be viewed in light of the fact that it has been a rough run for the tractor segment in the last two years (in FY02 industry volumes is estimated to have plummeted by 16%). Due to over-capacity and undercutting by some of the leading players, there has been a huge pile-up of inventory with the dealers. As a result, both volumes and realisations of PTRA were affected in FY01 also. While sales declined 8% to Rs 8,855 m, net profit fell by 10%. But a quarterly analysis of the companys performance underscores the industry status.

PTRA managed to gain market share for the first three quarters in FY01 with average quarterly volumes of 35,000 units. The company had a market share of 22% for 9mFY02, which dropped sharply in 4QFY02 due to aggressive ploy adopted by its peers. While industry volumes grew by 20% Q-o-Q, PTRAs unit sales declined by 23% over 3QFY02. Instead of pushing volumes to the dealers, the company seems to have a cautious stand so as to maintain profitability, which is reflected in its operating margins. PTRAs operating margins declined by only 30 basis points, which is comparatively lower than its peers. Apart from tractors, the company also is engaged in manufacturing of harvester combines, forklifts, castings (backward integration) and spare parts sales that together accounted for 8% of sales in FY01. Except for spare parts, we expect the contribution to remain stagnant from other interest areas. The backward integration and value engineering efforts taken by the company over the years has placed PTRA on a very competitive scale when it comes to end product pricing, without sacrificing profits. The following table reveals the average realisation per vehicle for the company along with its key competitors.

A comparative analysis (Rs)* Avg. Realisation/ Tractor sold Punjab Tractors M&M Gujarat Tractors Escorts
*FY01 data

232,011 240,335 241,627 242,945

But there are some concerns as well. The company has a commanding market share in states like Punjab and Haryana, where tractor penetration is one of the highest in India (though lower by international standards). So growth prospects, to that extent, are limited. But PTRA has made considerable progress in other regions as well over the last three years, which is creditable. The company has a 20% market share in UP and MP that accounted for as high as 37% of industry volumes in FY01. But at the same time, it still has a long way to go in Southern market (16% market share) where peers like TAFE and M&M have a strong presence. State-wise demographics (% of sales) Ind PTRA market ustry share Punjab Haryana UP and MP Bihar, WB & Orissa Raj, Mah AP, Kar, TN, Kerala Guj & & 16. 0% 37. 0% 11. 0% 17. 0% 16. 0% 21.0% 20.0% 19.0% 16.0% 16.0%

Besides, competition has increased significantly in the industry with a number of global players like John Deere and New Holland setting up manufacturing facilities in the country. Fresh capacities have come at a time when demand has been subdued. Growth prospects in the near term also remain challenging. So price realisation might continue to be under competitive pressure. Wider product portfolio of Ind Market ustry share (%)

(% sales)

Above 50 BHP 41-50 BHP 31-40 BHP Upto BHP Industry 25

3.2 % 18. 0% 56. 8% 22. 0% 10 0.0%

67.0% 17.0% 20.0% 7.0% 18.1%

Nevertheless, going forward, we expect the companys market share to increase in the 41-50 BHP and above 50 BHP segment. Together both the segments contributed to 29% of unit volumes for the company. This along with the value engineering initiatives taken by the company would also benefit in the long run. The size of the tractor market has more than doubled in the current decade, making India the largest market in the world. We expect the industry to grow in line with the GDP growth in the future. Given the long-run potential of the sector, Punjab Tractors is expected to improve its overall market share as well. The stock currently trades at Rs 150 implying a P/E multiple of 9x FY02 earnings. Given its market leadership, conservative financial accounting standards, past track record of the management and increasing awareness of farm mechanisation, PTRA is set to benefit from any upturn in industry volumes. At the current juncture, valuations are on the attractive side from a medium to long-term perspective.

7}The Swaraj brand has been strengthened with fresh advertising which retains the essential
positive imagery of the brand, but also, has begun to provide it with an element of modernity.

The impact of these measures taken in the first half of the year was visible in second half. As a result, tractor billing in H2 reached 17071 tractors against 14879 tractors sold during H2 of last year a jump of 15% over last year, in a period when domestic industry declined 3%.

The Directors Report has elaborately dealt with the performance in the two halves of the year presenting a picture of complete contrast. Risking repetition, let me refer to the same.

Parameters

First Half 2007- 08

Second half 2007- 08

Growth over First Half

Tractor Sales (Nos.) Total Revenue (Rs. Crores) Pre-Tax Profit (Rs. Crores)

10974 380.8 19.3

17071 591.2 77.8

56% 55% 303%