Swan Energy Shares Up 7%; Signs MoU With Balu Forge for SPV Deal

On November 14, 2024, Swan Energy, a leading oil, gas, and petrochemical trading company, entered into a deal with Balu Forge Industries with an objective to explore the potential for supply of products and solutions suitable for the global defence industry, aerospace, railways, and nuclear industries.

Balu Forge Industries Ltd and Swan Energy will subscribe to equity shares in the newly created SPV, which will be set up for their proposed business venture.

Swan Energy Q2 FY25 Financial Highlights

Swan Energy reported its Q2 results for fiscal year 2024 on November 14, 2024, showing a drop in both revenue and profit. The company’s revenue decreased by 15.62% year-on-year to ₹1,032.19 crore, and its profits declined by 39.37%, reaching ₹51.28 crore.

Total expenses for Q2 FY25 were ₹1,006.11 crore, down 4.33% year-on-year. The cost of materials consumed increased by 9.68% to ₹949.08 crore. Employee benefits expenses rose 40.07% to ₹11.64 crore, and finance costs were ₹65.66 crore, up 12.54% compared to the previous year.

Swan Energy Revenue Across Key Segments in Q2 FY25

1. Revenue from the textile segment decreased by 54.32%, dropping to ₹25.41 crore in Q2 FY25 compared to the previous year.
2. The energy segment saw a 65.13% year-on-year decline, with revenue falling to ₹65.99 crore in Q2 FY25.
3. Revenue from the construction business also fell, dropping to ₹25.27 crore in Q2 FY25 from ₹37.46 crore in Q2 FY24.

Share Price Performance

On November 18, 2024, Swan Energy share price traded 7.35% higher at ₹548 at 1:50 PM on NSE. The stock opened at ₹484 down from its previous close of ₹510.95. Meanwhile, Balu Forge Industries share price traded 0.75% higher at ₹755.60.

About Swan Energy and Balu Forge Industries

Swan Energy is an Indian company involved in the trading of oil, gas, and petrochemicals, with a diverse portfolio that spans multiple industries, including energy, infrastructure, and manufacturing.

Balu Forge Industries is an Indian manufacturer specialising in the production of high-quality automotive and industrial components. The company is known for its expertise in forged and machined parts, which serve a variety of industries, including automotive and engineering.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.