Sazgar's 3MFY25 profit rises nearly 5%

October 15, 2025 (MLN): Sazgar Engineering Works Limited (PSX: SAZEW) reported a net profit after tax of Rs4.42bn for the quarter ended September 30, 2025, up 4.7% from Rs4.22bn in the corresponding quarter last year.

Earnings per share increased to Rs73.07 compared to Rs69.77 in 1QFY24.

The company has declared a cash dividend of Rs15 per share for the quarter.

Net sales surged 28.5% YoY to Rs33.82bn from Rs26.33bn, demonstrating robust demand during the quarter. Cost of sales rose 35.2% to Rs25.30bn from Rs18.71bn.

Gross profit increased 11.8% to Rs8.52bn against Rs7.62bn in 1QFY24, with the gross margin contracting to 25.2% from 28.9% in the prior year quarter, depicting higher input costs relative to sales growth.

Distribution and marketing costs remained relatively stable, declining 30% to Rs964.1 million, while administrative expenses increased significantly by 67.9% to Rs206.5m.

Other operating expenses rose 11.1% to Rs542.1m. Total operating expenses climbed 26.8% to Rs1.71bn from Rs1.35bn last year.

The company recorded an operating profit of Rs6.81bn, up 8.6% from Rs6.27bn in 1QFY24.

Other income increased 27.4% to Rs513.7m from Rs403.4m in the previous year. Finance costs surged 37.9% to Rs79.2m from Rs57.5m.

Profit before taxation stood at Rs7.24bn, up 9.5% from Rs6.62bn in 1QFY24. The company reported a levy/final taxation recovery of Rs450,270 in 1QFY24, which was absent in the current quarter.

Taxation increased 17.9% to Rs2.83bn from Rs2.4bn in the prior period.

Net profit from continuing operations rose 4.7% to Rs4.42bn. Notably, 1QFY24 included a net loss after taxation from discontinued operations of Rs20,804, which was absent in 1QFY25.

The company concluded 1QFY25 with a net profit of Rs4.42bn, delivering a net profit margin of 13.1% compared to 16% in 1QFY24.

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