Sazgar Engineering Works Limited reported an impressive financial performance for the first half of Fiscal Year 2025, with Profit After Tax soaring to Rs. 6,625 million, marking a 370% year-on-year growth.
Despite a strong showing in the second quarter, where profitability reached Rs. 2,408 million with a 220% YoY increase, the company experienced a sequential decline of 43% quarter-on-quarter. Shareholders were rewarded with an interim dividend of Rs. 10.0 per share, bringing the total payout for the half-year to Rs. 20.0 per share.
The company’s net sales for the first half of FY25 tripled year-on-year to Rs. 44,695 million, with the second quarter contributing Rs. 18,363 million, reflecting a 180% YoY increase. However, revenue declined 30% on a QoQ basis, largely due to reduced volumetric sales of the Haval lineup.
In December 2024, approximately 300 units were sold, bringing total second-quarter sales to 1,886 units, a 27% decline from the 2,593 units sold in the previous quarter.
Gross margins improved to 28.4% in the second quarter, up from 24.8% in the same period last year, driven by increased hybrid vehicle sales. Other income surged 210% YoY to Rs. 333 million, supported by a 550% rise in cash and cash equivalents. However, finance costs climbed 160% YoY due to higher borrowings.
The company maintained investor confidence by issuing an interim dividend of Rs. 10.0 per share. Meanwhile, the effective tax rate increased to 43% from 39% last year, impacting bottom-line growth.
Following the announcements of the company’s financials in the latter half of the trading session on February 24th, the stock price of Sazgar has managed to crawl up. Closing at 1087 on Feb 24th, the early trading session on Tuesday saw SAZEW being traded at as high as 1111.0, an almost 2% increase. Earlier this month, SAZEW also its highest ever value at 1072.89.
Despite the short-term quarter-on-quarter decline, Sazgar’s strong year-on-year growth, improved margins, and increasing hybrid vehicle sales indicate a promising trajectory for the company.
