Sazgar’s Profits for Half Year Down 15% Despite Q2 Gains

Sazgar Engineering Works Limited (PSX: SAZEW) announced its financial results for the half year that ended on December 31st, 2022, wherein the company’s profits after tax (PAT) decreased by 15 percent to Rs. 79.11 million from Rs. 93.15 million recorded in the same period last year. Meanwhile, SAZEW increased its quarterly earnings in October-December (2QFY23), ending the quarter with a profit after tax of Rs. 68 million, up 518 percent quarter-on-quarter (QoQ) from Rs. 11 million in the previous quarter. On a year-on-year (YoY) basis, the PAT for the quarter is up 119.34 percent. During the half year, the net sales of the company increased by 11.3 percent YoY to Rs. 4.69 billion from Rs. 4.21 billion. During 2QFY23, the topline showed a 36 percent surge where sales increased from Rs. 2.34 billion to Rs. 3.18 billion. The gross profit of the company in 6MFY23 jumped by 10.3 percent YoY to Rs. 420 million, while the other income decreased by 31.7 percent from Rs. 5.53 million to Rs. 3.77 million. Other income during Q2 went down by 52 percent YoY to Rs. 325 million. SAZEW’s finance cost skyrocketed by a massive 411 percent from Rs. 17.75 million to Rs. 90.75 million in 6MFY23 and 302 percent during Q2. The company reported earnings of Rs. 1.13 per share in Q2 as opposed to Rs. 0.51 per share in the previous year. The company has not announced a cash dividend this quarter. The company’s scrip at the bourse closed at Rs. 49.99, up 1.03 percent or Rs. 0.51 with a turnover of 402,000 shares on Friday.