LAHORE — Sazgar Engineering Works Limited (SAZEW) has announced a landmark financial performance, posting its highest-ever net profit of Rs . 16.3 billion for the fiscal year 2024-25 (FY25).
This represents a remarkable 106% increase compared to the Rs. 7.9 billion recorded in the previous fiscal year. The company’s earnings per share (EPS) mirrored this success, soaring to Rs. 270.22 from Rs. 131.12 in FY24.
A substantial surge in both revenue and sales volumes underpinned the impressive growth. Net revenue climbed by 89% year-on-year to Rs. 108.7 billion in FY25.
According to a report by Arif Habib Ltd., this was primarily driven by a 102% surge in Haval vehicle volumes, reaching 10,832 units, alongside a 2.8-fold increase in three-wheeler sales, which totaled 26,264 units.
Strong Operational Performance
Sazgar’s operational metrics also showed robust health, with operating profit before tax rising by 122% to Rs. 26.7 billion and gross profit more than doubling to Rs. 31.6 billion.
The company’s return on equity (ROE) increased to 122% from 97% the previous year, highlighting exceptional efficiency in generating returns for its shareholders.
In a move to reward investors, the company declared a final cash dividend of Rs. 52 per share for FY25, a significant increase from the Rs. 24 per share paid out in FY24. This brings the full-year payout ratio to 19%.
Q4 Performance and Strategic Shifts
While the full-year results were stellar, Sazgar’s performance in the fourth quarter (4Q FY25) experienced a notable decline. Earnings for the quarter slipped by 44% quarter-on-quarter to Rs. 3.55 billion (EPS of Rs. 57.58).
Despite the quarterly earnings dip, revenue for 4QFY25 still grew by 18% year-on-year, reaching Rs. 27.3 billion. This growth was supported by strong Haval sales of 2,817 units (+28% YoY) and a 25% year-on-year increase in three-wheeler volumes to 6,258 units.
In a strategic pivot to sharpen its business focus, Sazgar announced plans to discontinue its Home Appliances business effective September 1, 2025.
SAZEW is currently trading at a forward price-to-earnings (P/E) ratio of 5.4x for FY26/27, suggesting that the market anticipates continued strong performance from the company’s core operations.
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