Forum Pakistan reports that Sazgar Engineering Works Limited (SAZEW) has delivered a stellar financial performance for the fiscal year 2024-25 (FY25), announcing its highest-ever net profit. This remarkable achievement, driven by robust sales in its core segments, solidifies Sazgar’s position as a powerhouse in Pakistan’s automotive industry.
The company’s net profit more than doubled, soaring to a record Rs. 16.3 billion, a stunning 106% increase from Rs. 7.9 billion in the previous year. This translated into a significant jump in earnings per share (EPS), from Rs. 131.12 to an impressive Rs. 270.22 for FY25.
The Engines of Growth: Haval and Three-Wheelers
The extraordinary financial results were fueled by explosive growth in two key product lines:
- Haval Vehicles: Sales volumes of Haval SUVs witnessed a staggering 102% surge, reaching 10,832 units. This performance demonstrates the strong market acceptance and growing popularity of the Haval brand in Pakistan.
- Three-Wheelers: The company’s three-wheeler segment also saw a phenomenal increase, with sales jumping by 2.8 times to 26,264 units, showcasing Sazgar’s dominance in this core business area.
This significant growth in sales translated directly to the top line, with net revenue climbing to a record Rs. 108.7 billion, an 89% increase year-on-year. The company’s operational efficiency also improved, with gross profit more than doubling to Rs. 31.6 billion and a remarkable return on equity (ROE) of 122%.
A Look at the Quarterly Performance and Strategic Moves
While the full-year results were exceptional, the fourth quarter (4QFY25) saw a slight dip in earnings, which fell 44% quarter-on-quarter to Rs. 3.55 billion. Analysts attribute this decline to a shift in the sales mix towards lower-priced variants, which impacted gross margins. Despite this, revenue for the quarter still showed a healthy 18% year-on-year increase, supported by continued strong sales of both Haval vehicles and three-wheelers.
In a strategic move to sharpen its focus on its most profitable segments, Sazgar announced it will discontinue its Home Appliances business starting September 1, 2025. The company stated that this decision is not expected to impact its net sales or profitability, allowing it to concentrate resources on its core automotive operations.
To reward its shareholders for a banner year, Sazgar has declared a final cash dividend of Rs. 52 per share for FY25, a substantial increase from the Rs. 24 per share paid in the previous year. This brings the full-year payout ratio to 19%, demonstrating the company’s confidence and commitment to its investors.
