February 08, 2023 (MLN): Sazgar Engineering Works Limited (SAZEW), a premier manufacturer of CNG 4 Stroke Auto Rickshaw (3 Wheelers) and Automotive Wheel Rims on Wednesday reported net profits of Rs79.11 million during 1HFY23, down by 15% YoY against Rs93.14mn net profits in the same period last year.
This has translated into earnings per share (EPS) of Rs1.31 in 1HFY23, compared to EPS of Rs1.54 in 1HFY22.
During the period under review, the top line witnessed a minor growth of 11.3% to Rs4.69 billion owing to volumetric growth while the cost of sales moved up by 11.4% YoY on the back of increasing commodity prices in the international market. In addition, the continuous depreciation of PKR against the USD also hit the cost of sales during the period.
On the expense side, SAZEW’s distribution expenses went up by 86.21% YoY to Rs129.9mn. Meanwhile, the admin cost surged by 37% during the period under review.
Notably, the company posted a 32% YoY decrease in other income to Rs3.77mn compared to Rs55.29mn in 1HFY22.
On the tax front, the effective tax rate improved to 19.78% in 1HFY23 as compared to 56.6% in the same period last year.
With manufacturing facilities based in Pakistan and a Global Dealer Network, Sazgar is leading the market in Pakistan and also exporting to international markets.
Last year, the company had been awarded “Category -A, Greenfield Investment status” by the Ministry of Industries & Production of Pakistan.
At the time of writing, the scrip of the company is being traded at Rs47.10, up by 87 paisa or 1.84% DoD.
|
Financial Results for the half year ended December 31, 2022 (Rupees) |
|||
|---|---|---|---|
|
Dec-22 |
Dec-21 |
% Change |
|
|
Sales – net |
4,690,145,560 |
4,213,336,491 |
11.32% |
|
Cost of sales |
(4,269,815,131) |
(3,832,297,994) |
11.42% |
|
Gross profit |
420,330,429 |
381,038,497 |
10.31% |
|
Distribution cost |
(129,952,141) |
(69,785,019) |
86.22% |
|
Administrative expenses |
(98,667,493) |
(71,942,116) |
37.15% |
|
Other operating expenses |
(6,098,227) |
(12,362,569) |
-50.67% |
|
|
234,717,861 |
154,089,704 |
52.33% |
|
Other income |
3,772,639 |
5,529,482 |
-31.77% |
|
Operating profit before finance cost |
189,385,207 |
232,478,275 |
-18.54% |
|
Finance cost |
(90,756,270) |
(17,750,329) |
411.29% |
|
Profit before taxation |
98,628,937 |
214,727,946 |
-54.07% |
|
Taxation |
(19,514,453) |
(121,579,125) |
-83.95% |
|
Profit after taxation |
79,114,484 |
93,148,821 |
-15.07% |
|
Earnings per share – basic and diluted |
1.31 |
1.54 |
-14.94% |
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Posted on: 2023-02-08T10:46:27+05:00
