Tuesday, June 18, 2024

Pakistani Auto Company ‘Sazgar’ Posts 1689% Profit Growth in 3 Months

The financial results for the quarter that ended on March 31st, 2023 (3QFY23) were released by Sazgar Engineering Works Limited (PSX: SAZEW). The company’s profits after tax (PAT) increased by 16.8 times, or 1,689 percent, to reach Rs. 444.6 million from Rs. 24.84 million in the corresponding period the previous year.

A profit after tax of Rs. 523.7 million, up 343.8 percent YoY from Rs. 117.9 million in 9MFY22, was the final result of SAZEW’s nine-month earnings in July-March (9MFY23), which climbed.

The company’s net sales for the quarter climbed by 176.3% YoY, from Rs. 2.85 billion to Rs. 7.9 billion. The topline for 9MFY23 revealed a 78% growth in sales, from Rs. 7.07 billion to Rs. 12.59 billion.

In the third quarter, the company posted earnings of Rs. 7.36 per share compared to Rs. 0.41 per share the year before. The company has not announced a cash dividend for the quarter. The company’s stock price was Rs. 50.39 at the time of reporting, up 7.40 percent or Rs. 3.47, with 1.06 million shares changing hands on Tuesday.

Positive Q1 2023 sales figures

Sazgar had a solid start to the year in terms of sales, unlike many automakers. In January 2023, the company sold 416 Haval H6 cars, followed by 280 in February and 100 in March.

The introduction of the Haval H6 HEV has probably contributed to the strong sales. However, BAIC BJ40 sales haven’t exactly been stellar.

Additionally, Sazgar raised the cost of its automobiles in the first quarter of 2023 by up to Rs. 2.4 million. As a result, the price of H6 has increased from Rs. 9.5 million to Rs. 12.15 million, making it an even more specialised good.

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