Sazgar Engineering reports strong growth with around Rs13bn profit

April 21, 2025 (MLN): Sazgar Engineering Works Limited (PSX: SAZEW) posted a stellar net profit of Rs12.85 billion [EPS: Rs212.67] for the nine-month period ended March 31, 2025, reflecting a remarkable 189% surge from Rs4.45bn [EPS: Rs73.59] recorded in the same period last year (SPLY).

The company has declared an interim cash dividend of Rs12 per share, representing 120%, in addition to the interim dividends already paid at Rs20 per share, or 200%.

The company’s revenue surged by 135.5% to Rs81.43bn, compared to Rs34.58bn in SPLY, driven by strong sales performance.

Gross profit rose an impressive 183.9% to Rs24.78bn, while gross margins improved to 30.4% versus 25.2% last year.

Operating profit soared 185.3% to Rs21.78bn, despite a sharp rise in total operating expenses, which grew 133.1% to Rs3.02bn.

Distribution and marketing costs jumped 149.4% to Rs2.57bn, and administrative expenses increased 69.3% to Rs447.4m.

Other operating income rose 87.9% to Rs1.04bn, while other operating expenses surged 204.8% to Rs1.66bn.

Finance cost nearly doubled to Rs201.36m, up 99.2% from Rs101.07m in SPLY, likely due to elevated borrowing costs.

The company paid higher taxes of Rs8.19bn during the period, compared to Rs2.89bn last year, reflecting a 183.3% rise.

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