April 19, 2024 (MLN): During its nine-month period ending on March 31, 2024, Sazgar Engineering Works Limited (PSX: SAZEW) reported a stellar performance, earning a massive profit of Rs4.45 billion [EPS: Rs73.59], compared to earnings of Rs523.75 million [EPS: Rs8] in the same period last year (SPLY).
Rewarding shareholders for this improved financial performance, the Board of Directors (BoD) of the company has declared an interim cash dividend of Rs8 per share.
Going by the results, the company's top line surged by 2.7x YoY to Rs34.58bn as compared to Rs12.79bn in SPLY.
The cost of sales rose by 2.27x YoY but the change in sales outpaced the rise in costs, which improved the gross profit significantly by 6x YoY to Rs8.93bn in 9MFY24.
On the expense side, the company observed an increase in Distribution and marketing expenses by 2.4x YoY and other expenses by around 10x YoY to clock in at Rs1.03bn and Rs544.22m respectively during the review period.
Administrative expenses were also reported higher at Rs264.35m in 9MFY24 compared to Rs147.45m in 9MFY23.
Despite these rising expenses, the company managed to cover them through the substantial sale of three-wheelers and four-wheelers.
The profit got a further boost from the inflow of other income that clocked in at Rs351.19m in 9MFY24 as compared to Rs17.61m in SPLY.
The company’s finance costs shrunk by 24.13% YoY and stood at Rs101.07m as compared to Rs133.22m in 9MFY24, despite higher interest rates.
On the tax front, the company paid a higher tax worth Rs2.89bn against the Rs232.79m paid in the corresponding period of last year, depicting a massive year-on-year rise.
| Interim Financial Results for the nine months ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| March 24 | March 23 | % Change | |
| Revenue from contracts with customers – net | 34,584,723 | 12,788,474 | 170.44% |
| Cost of sales | (25,655,856) | (11,301,678) | 127.01% |
| Gross Profit | 8,928,867 | 1,486,796 | 500.54% |
| Distribution and marketing expenses | (1,031,484) | (413,258) | 149.60% |
| Administrative expenses | (264,347) | (147,451) | 79.28% |
| Other Income | 351,187 | 17,608 | 1894.45% |
| Other expenses | (544,225) | (53,940) | 908.95% |
| Finance cost | (101,073) | (133,218) | -24.13% |
| Profit before taxation | 7,338,925 | 756,537 | 870.07% |
| Taxation | (2,890,506) | (232,791) | 1141.67% |
| Net profit for the period | 4,448,419 | 523,745 | 749.35% |
| Basic earnings/ (loss) per share | 73.59 | 8 | – |
Amount in thousand except for EPS
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Posted on: 2024-04-19T09:54:52+05:00
