Sazgar Engineering Works Limited (SAZEW) has delivered an impressive financial performance for the first half of Fiscal Year 2025 (FY25), with its Profit After Tax (PAT) soaring to Rs. 6,625 million, reflecting a remarkable 370% YoY growth.
However, despite a solid performance in second quarter of fiscal year 2025 (2QFY25) —where profitability stood at Rs. 2,408 million, up 220% year-on-year (YoY)—the company experienced a sequential decline of 43% quarter-on-quarter (QoQ). Shareholders, however, 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.
Revenue & Sales Trends
SAZEW’s net sales in first half of fiscal year 2025 (1HFY25) surged threefold year-on-year (YoY), reaching Rs. 44,695 million. The second quarter alone contributed Rs. 18,363 million, reflecting a 180% YoY increase.
However, on a quarter-on-quarter (QoQ) basis, revenue dipped by 30%, primarily due to reduced volumetric sales of the Haval lineup. December 2024 saw approximately 300 units sold, bringing total sales for 2QFY25 to 1,886 units—a 27% drop from the 2,593 units recorded in the preceding quarter.
Profitability & Financial Insights
Gross margins improved to 28.4% in second quarter of fiscal year 2025 (2QFY25), up from 24.8% in the same period last year, mainly due to increased hybrid vehicle sales. Other income witnessed a 210% YoY rise, reaching Rs. 333 million, driven by a 550% increase in cash and cash equivalents. However, finance costs also climbed 160% YoY due to higher borrowings.
Dividend & Taxation
The company maintained the confidence of investor with an interim dividend of Rs. 10.0 per share in 2QFY25. Meanwhile, the effective tax rate rose to 43% from 39% in the same period last year, impacting bottom-line growth.
Despite short-term QoQ declines, SAZEW’s strong YoY growth, improved margins, and rising hybrid sales signal a promising trajectory. What do you think about new earning graph of Sazgar Engineering Works Limited (SAZEW)? Drop your thoughts in the comments section.
