Sazgar Engineering Works Limited (PSX: SAZEW) recently reported a substantial net profit of Rs4.22 billion for the quarter ending in September 2024, which translates to earnings per share (EPS) of Rs69.77. This is a major increase of 540.4% compared to the Rs658.54 million profit, or EPS of Rs10.89, recorded during the same quarter last year.
The company achieved significant revenue growth, with sales reaching Rs26.33 billion—a rise of 227.3% over last year’s numbers. In addition, Sazgar’s gross profit saw an impressive surge, increasing by 404.5% to reach Rs7.62 billion. This growth in profits also helped the company improve its gross profit margin to 28.9%.
However, despite facing higher administrative and operational expenses, Sazgar announced a notable 100% interim cash dividend of Rs10 per share, showing confidence in its financial strength.
The company’s tax expenses also saw a significant rise, with the effective tax rate standing at 36.2%. This meant Sazgar paid Rs2.4 billion in taxes for the quarter—an increase of 431.9% compared to the same period last year.
