Sazgar Posts Massive 5,881% Profit Growth in Q1 FY24

Sazgar Engineering Works Limited (PSX: SAZEW) Thursday announced its financial results for the quarter that ended on September 30, 2023 (1QFY24). The company’s profit after tax (PAT) increased by 5,881 percent year-on-year (YoY) or 58.8x to Rs. 658.5 million in 1QFY24 from Rs. 11 million recorded in the same period of last year. During the quarter, the net sales of the company increased by 426 percent YoY to Rs. 8 billion from Rs. 1.53 billion. The gross profit of the company in 1QFY24 jumped by 682 percent YoY to Rs. 1.51 billion, translating into gross margins of 19 percent for the period in review. Meanwhile, the other income increased by 3,931 percent or 39.3x from Rs. 1.97 million to Rs. 79.6 million during the quarter. SAZEW’s finance cost decreased by 25 percent from Rs. 47.6 million to Rs. 35.5 million during Q1. The company reported earnings of Rs. 10.89 per share in Q1FY24 as opposed to Rs. 0.18 per share in 1QFY23. The company’s scrip at the bourse closed at Rs. 155.33, up 1.79 percent or Rs. 2.73 with a turnover of 5.49 million shares on Thursday. In its analysts briefing, the company said that it plans to introduce new variants in the 4-wheel segment and innovate in the 3-wheel segment, including Electric 3-wheelers. The company also aims to expand its local dealership network and explore new markets for export business.