Sazgar profit doubles to Rs16bn

September 1, 2025 (MLN): Sazgar Engineering Works Limited (PSX: SAZEW) informed its financial results for the year ended June 30, 2025, reporting a significant rise in profitability alongside a generous dividend payout.

The company declared a final cash dividend of Rs20 per share (200%), in addition to the interim dividend of Rs32 per share (320%) already paid, taking the total dividend for FY25 to Rs52 per share.

Sazgar posted a net profit of Rs16.34 billion, marking a robust increase of 106% from Rs7.94bn recorded in FY24. This translated into earnings per share (EPS) of Rs270.26, up from Rs131.29 in the previous year.

Net sales surged 89% year-on-year (YoY) to Rs108.7bn against Rs57.6bn last year, driven by strong demand across its product segments. Gross profit more than doubled to Rs31.64bn compared to Rs15.65bn in FY24, showing improved margins and volumes.

Operating profit stood at Rs25.61bn, up 106% YoY from Rs12.45bn, despite higher administrative expenses of Rs560m (up 46% YoY) and other operating expenses nearly doubling to Rs1.99bn. Distribution and marketing costs also rose 92% to Rs3.47bn.

Other income contributed Rs1.36bn, a 63% YoY increase, supporting the bottom line. Finance costs, however, increased 36% to Rs230m due to higher borrowing costs.

After accounting for taxation of Rs10.40bn (up 101% YoY), the company recorded a net profit after tax of Rs16.34bn, showing strong operational and financial performance.

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