Fakiha Tariq

Sazgar Engineering Works Limited (SAZEW) posted impressive growth in the first nine months of FY 2022-23, with revenues up 78%, gross profit up 132%, and net profit up 344% year-on-year, according to WealthPK. SAZEW earned a gross profit of Rs1.29 billion on gross sales of Rs12.5 billion in 9MFY23, resulting in a gross profit ratio of 10%. The company posted a net profit of Rs523 million and a net profit ratio of 4.2% in 9MFY23.The company posted earnings per share of Rs8.66 in the nine-month period.

The mid-cap automobile assembler jacked up the sales revenue by 78% from Rs7.07 billion in 9MFY22 to Rs12.5 billion in 9MFY23. Likewise, the gross profit of Rs557 million in 9MFY22 rocketed 132% in 9MFY23. The net profit in 9MFY22 also shot up by 344% from Rs117 million to Rs523 million in 9MFY23. Registered on Pakistan Stock Exchange (PSX) with the symbol ‘SAZEW’, the company is the ninth-largest firm in the automobile assembler sector with a market capitalisation of Rs3 billion.

Quarterly Review

Quarterly analysis shows an increasing trend in the growth of sales, profits and earnings per share. The company made the highest sales, gross and net profits in the third quarter (January-March) of FY23. In the first quarter (July-September) of FY23, SAZEW earned Rs1.50 billion in gross revenues and Rs165 million in gross profit. The company posted a net profit of Rs11 million in this quarter. Therefore, the gross and net profit ratios were reported to be 11% and 0.7%, respectively. In 1QFY23, the company reported the earnings per share of Rs0.18.

In the second quarter (October-December), the auto manufacturer posted a gross revenue of Rs3.18 billion and a gross profit of Rs255 million. The company posted a net profit of Rs68 million. Therefore, the gross and net profit ratios stood at 8.0% and 2.1%, respectively. In 2QFY23, the company reported the earnings per share of Rs1.13. SAZEW achieved record-breaking revenues and profits in the third quarter, with Rs7.90 billion in net sales, Rs871 million in gross profit, and Rs444 million in net profit. The gross and net profit margins for 3QFY23 clocked in at 11% and 5.6%, respectively. In the third quarter of FY23, SAZEW posted the highest earnings per share of Rs7.36.

Credit: Independent News Pakistan-WealthPk