Sazgar’s Profit Grows by Nearly 190% in 9 Months

Sazgar Engineering Works Limited (SAZEW) announced its financial result for 9MFY25 today, whereby the company posted a Profit After Tax (PAT) of Rs. 12,855 million (EPS: Rs. 212.66), increasing by 189 percent year-on-year. During the third quarter of FY25, the profitability of the company amounted to Rs. 6,230 million (EPS: Rs. 103.06), increasing by 105 percent year-on-year. Alongside the result, the company announced a cash dividend of Rs. 12.0 per share in the third quarter of FY25, taking the payout to Rs. 32.0 per share in 9MFY25. Net sales for 9MFY25 amounted to Rs. 81,433 million, reflecting a significant 135 percent year-on-year increase. On a quarterly basis, revenue surged by 83 percent year-on-year (2.4x) to Rs. 36,738 million in the third quarter of FY25. According to Arif Habib Limited, the notable growth is primarily attributable to higher volumetric sales of Haval and three-wheelers, which rose 1.9x year-on-year (67 percent) to 3,636 units and 8,516 units in the third quarter of FY25 (assuming SAZEW sold 1,860 and 1,892 units in January 2025). During the third quarter of FY25, gross margins were recorded at 32.6 percent compared to 29.0 percent recorded in the same period last year. The increase in gross margin is due to better volumetric sales, which translates into better margins. Other income inched up by 81 percent year-on-year to clock in at Rs. 299 million in the third quarter of FY25, which is mainly because of an increase in cash and cash equivalents by 34 percent year-on-year. The company booked an effective tax of 39 percent in the third quarter of FY25 vis-à-vis 39.2 percent in the same period last year. Alongside the result, the company revised its planned investment in the four-wheeler division from Rs. 4.5 billion to Rs. 11.5 billion (excluding land costs). This investment will be utilized for the expansion of the paint shop, construction of new warehousing facilities, installation of a 5.7MW solar power system, and the development and installation of a new manufacturing facility for NEVs. The company has announced the rollout of its first CKD model of NEVs, expected to be launched before 31st March 2026.