Sazgar Engineering Works Limited (PSX: SAZEW) announced its 1QFY25 results, reporting earnings of Rs. 4.2 billion (EPS Rs. 69.77), up 541% year-on-year (YoY) and 21% quarter-on-quarter (QoQ).
Alongside its results, the company declared a Rs. 10 per share dividend for 1QFY25—the first-ever dividend for this period.
Net sales surged to Rs. 26.3 billion in 1QFY25, a 3.3x YoY and 14% QoQ increase, driven largely by strong demand for Haval variants, according to Topline Securities.
Sales of both four-wheelers and three-wheelers saw significant growth. Four-wheeler sales reached 2,605 units, a 3.5x YoY and 18% QoQ increase, while three-wheeler sales rose to 5,435 units, marking an 89% YoY and 9% QoQ gain.
September 2024 saw the company achieve its highest monthly four-wheeler production along with its second-highest monthly sales. With continued strong demand for Haval models and ongoing CBU testing for the Tank and Ora models, four-wheeler production and sales are expected to remain robust, supporting Sazgar’s growth trajectory.
Gross margins stood at 28.94% in 1QFY25, slightly lower than 29.13% in 4QFY24 but well above 18.78% in 1QFY24. Distribution expenses increased 155% YoY but fell 5% QoQ to Rs. 740 million, while administrative expenses rose 64% YoY and 3% QoQ to Rs. 123 million. Other income jumped 4.1x YoY but declined 16% QoQ to Rs. 403 million. The effective tax rate dropped to 36% compared to 40% in 4QFY24 and 41% in 1QFY24.
