Sazgar Engineering Reports Rs. 7.93 Billion Profit for FY24, Marking a 700% Surge
Sazgar Engineering Works Limited (PSX: SAZEW) has posted a record profit after tax (PAT) of Rs. 7.93 billion, translating to an Earnings Per Share (EPS) of Rs. 131.29 for the fiscal year 2023-24 (FY24). This impressive growth represents a nearly 700 percent increase compared to the Rs. 995 million (EPS: Rs. 16.46) profit reported in the previous fiscal year (FY23).
In the fourth quarter of FY24 alone, the company’s earnings soared to Rs. 3,487 million (EPS: Rs. 57.69), marking a 7.4x increase compared to the same period last year. Sazgar also declared a final cash dividend of Rs. 12 per share, bringing the total annual dividend payout to Rs. 20 per share.
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Topline Growth and Sales Performance
Sazgar’s revenue surged 3.2 times year-on-year (YoY), reaching Rs. 57,642 million in FY24. This growth was primarily fueled by a 3x increase in Haval vehicle sales, totaling 5,374 units, and a 1.6x rise in three-wheeler sales, amounting to 15,014 units. The company’s net sales in the fourth quarter alone rose 4.1 times YoY to Rs. 23,058 million, compared to Rs. 5,581 million in the same period last year (SPLY).
Improved Margins and Other Income
Gross margins for FY24 improved significantly to 27 percent, up from 14 percent in the previous fiscal year, mainly due to concessionary customs duties and GST on Haval vehicles, along with stability in the exchange rate. In the fourth quarter, gross margins increased to 29 percent, compared to 23 percent in SPLY.
Other income saw a remarkable 27x YoY increase, reaching Rs. 832 million in FY24, driven by higher returns from cash and cash equivalents. For 4QFY24, other income surged by 38x YoY to Rs. 481 million.
Rising Expenses and Taxation
The company’s other expenses escalated by 9.8x to Rs. 1,000 million for the year, with a 9.4x increase on a quarterly basis to Rs. 456 million. Sazgar reported an effective tax rate of 39.6 percent in 4QFY24, up from 35 percent in the same quarter last year.
Overall, Sazgar Engineering’s robust financial performance in FY24 highlights its strong growth trajectory, driven by increased vehicle sales and improved profitability.
