Sazgar Engineering Works Limited (PSX: SAZEW) has announced its financial results for the quarter ended September 30, 2025. The company reported a net profit of Rs. 4.42 billion, a 4.7% increase from the Rs. 4.22 billion profit recorded in the same quarter last year.
Earnings per share (EPS) for the quarter stood at Rs. 73.07, up from Rs. 69.77 in 1QFY24.
Rewarding its shareholders, the Board of Directors declared a cash dividend of Rs. 15.00 per share for the quarter.
The company’s top-line performance was robust, with net sales surging 28.5% to Rs. 33.82 billion from Rs. 26.33 billion in the prior year, indicating strong market demand for its products. However, the cost of sales grew at a faster rate of 35.2%, leading to a contraction in the gross profit margin. Consequently, gross profit increased by a more modest 11.8% to Rs. 8.52 billion.
Performance Highlights (Rs. in billion)
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Net Sales:Â 33.82 (1QFY24: 26.33) |Â +28.5%
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Gross Profit:Â 8.52 (1QFY24: 7.62) |Â +11.8%
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Operating Profit:Â 6.81 (1QFY24: 6.27) |Â +8.6%
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Profit After Tax:Â 4.42 (1QFY24: 4.22) |Â +4.7%
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Earnings Per Share (EPS):Â Rs. 73.07 (1QFY24: Rs. 69.77) |Â +4.7%
The company’s operating profit saw a healthy 8.6% growth to Rs. 6.81 billion, supported by a significant increase in other income, which rose 27.4% to Rs. 513.7 million. This helped offset a 26.8% rise in total operating expenses, which was driven by a substantial increase in administrative costs.
Finance costs also saw a significant uptick of 37.9%, while the effective tax rate increased, contributing to the slower growth in the bottom line compared to the top line.
The net profit margin for the quarter settled at 13.1%, down from 16.0% in the same period last year, reflecting the impact of higher input costs on overall profitability.
