Sazgar quarterly profit surges over six times

October 28, 2024 (MLN): Sazgar Engineering Works Limited (PSX: SAZEW) recorded a net profit of Rs4.22 billion [EPS: Rs69.77] during the quarter ending September 2024, up 540.4% from the profit of Rs658.54 million [EPS: Rs10.89] in the same period last year (SPLY).

Its shares jumped almost 6% during intraday trade Monday.

Along with the results, the company announced an interim cash dividend for the quarter ended September 30, 2024 at Rs10 per share i.e. 100%.

The company's revenue surged by 227.3% to Rs26.33bn as compared to Rs8.04bn in SPLY. Gross profit jumped 404.5% to Rs7.62bn in Q1 FY25.

The gross margins improved to 28.9% as compared to 18.8% in SPLY.

During the period under review, other income also went up by 406.7% to stand at Rs403.39m in Q1 FY25 as compared to Rs79.61m in SPLY.

On the expense side, the company's administrative expenses rose 65.3% from a year ago to Rs122.98m, selling and distribution expenses rose 155.1% to Rs740.06m, and other operating expenses rose 504.9% to Rs488.03m.

The company’s finance cost skyrocketed by 61.6% and stood at Rs57.46m as compared to Rs35.56m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs2.4bn against Rs450.83m paid in the corresponding period of last year, an increase of 431.9%.

This translates to an effective tax rate of 36.2% as compared to 40.6% in SPLY.

Amount in thousand except for EPS

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