Sazgar Engineering Works Limited (SAZEW) announced a remarkable financial performance for the first nine months of fiscal year 2025 (9MFY25), posting a Profit After Tax (PAT) of Rs. 12,855 million, representing a 189 percent year-on-year increase. Earnings per share (EPS) stood at Rs. 212.66.
In the third quarter alone, the company recorded a PAT of Rs. 6,230 million (EPS: Rs. 103.06), marking a 105 percent rise compared to the same period last year. Alongside the results, Sazgar declared a cash dividend of Rs. 12 per share for Q3 FY25, bringing the total dividend payout to Rs. 32 per share for 9MFY25.
Net sales for 9MFY25 surged by 135 percent year-on-year to Rs. 81,433 million. Quarterly revenue also saw significant growth, rising 83 percent year-on-year to Rs. 36,738 million in Q3 FY25.
According to Arif Habib Limited, this growth was primarily driven by higher volumetric sales of Haval vehicles and three-wheelers. Sales of Haval vehicles nearly doubled, increasing 1.9 times year-on-year to 3,636 units, while three-wheeler sales reached 8,516 units in Q3 FY25.
Gross margins improved to 32.6 percent in Q3 FY25, up from 29.0 percent in the same quarter last year, reflecting better sales volumes and operational efficiencies.
Other income rose by 81 percent year-on-year to Rs. 299 million, mainly due to a 34 percent increase in cash and cash equivalents.
The company maintained an effective tax rate of 39 percent in Q3 FY25, consistent with the previous year.
Expansion Plans and NEV Rollout
Sazgar Engineering revised its planned investment in the four-wheeler division, increasing the budget from Rs. 4.5 billion to Rs. 11.5 billion (excluding land costs). The expanded investment will fund the expansion of the paint shop, construction of new warehousing facilities, installation of a 5.7MW solar power system, and the development of a new manufacturing facility for New Energy Vehicles (NEVs).
The company also announced plans to launch its first Completely Knocked Down (CKD) model of NEVs before March 31, 2026, signaling its commitment to innovation and sustainable mobility.
