Sazgar Engineering Works Limited (PSX: SAZEW) has announced its financial results for FY25, where in the company recorded profit of Rs. 16.3 billion (EPS of Rs. 270.22), up 2.06x on a year-on-year (YoY) basis.
During 4QFY25, the company reported profit of Rs. 3.5 billion (EPS 57.58) flattish YoY while down 44% on a quarter-on-quarter (QoQ) basis. The result came lower than industry expectations as gross margins clocked in lower than expected, brokerage house Topline Securities said in its result review.
The company reported gross margins of 25.1% in 4QFY25, compared to 29.1% in 4QFY24 and 32.6% in 3QFY25. This took FY25 gross margins to 29.1% in FY25 against 27.1% in FY24.
Alongside the results, the company announced a dividend of Rs. 20 per share in 4QFY25. This brings FY25 dividend to Rs. 52 per share.
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Net sales surged 18% YoY but declined 26% QoQ to Rs. 27.3 billion in 4QFY25. This trend was largely driven by four-wheeler volumes, which increased 28% YoY but fell 24% QoQ, with sales clocking in at 2,817 units compared to 2,202 units in 4QFY24 and 3,686 units in 3QFY25 (the latter due to the accumulated Dec-Jan sales booked in January).
Three-wheeler sales also rose 25% YoY but declined 24% QoQ to 6,258 units in 4QFY25 versus 4,992 units in 4QFY24 and 8,216 units in 3QFY25.
Distribution expenses rose YoY by 16% YoY while fell 15% QoQ while Admin and other expenses fell 5% and 7% YoY and 40% and 44% QoQ respectively.
Other income fell 33% YoY but rose 7% QoQ to Rs. 320 million in 4QFY25.
Effective tax rate in 4QFY25 stood at 39% compared to 40% in 4QFY24 and 39% in 3QFY25. Taking FY25 tax rate to 39%.
