Sazgar reports record Rs6.2bn profit in 3QFY25

KARACHI: Sazgar Engineering Works Limited (SAZEW) posted its highest-ever quarterly profit of Rs6.2 billion for 3QFY25, translating into earnings per share (EPS) of Rs103.05, an increase of 2.05x year-on-year (YoY) and 2.59x quarter-on-quarter (QoQ), surpassing market expectations.

According to Topline Securities, “the stellar performance was driven by a sharp rise in sales and improved operational efficiency, resulting in gross margins climbing to 32.6 per cent, up from 28.35 per cent in the previous quarter and 28.97 per cent in the same period last year.”

Net sales surged 83 per cent YoY and doubled QoQ to Rs36.7 billion, supported by strong demand for both three- and four-wheelers. Four-wheeler volumes rose 112 per cent QoQ to 3,686 units, while three-wheeler volumes grew 40 per cent QoQ to 8,216 units. The company declared a dividend of Rs12 per share, taking the total payout for 9MFY25 to Rs32 per share. Operating expenses saw a notable rise in line with increased sales, while other income stood at Rs299 million, up 81 per cent YoY but down 10 per cent QoQ. The effective tax rate was recorded at 39 per cent.

In a significant development, the board approved an upward revision in the investment plan for its four-wheeler expansion, boosting the outlay from Rs4.5 billion to Rs11.5 billion (excluding land costs). Planned upgrades include a new paint shop, warehouse facilities, a 5.7MW solar system, and local assembly infrastructure for new energy vehicles (NEVs), now expected to roll out by March 2026.