Sazgar Engineering Works (SAZEW) Q1 2024 earnings summary

Executive summary

• Q1 FY2024 net sales rose to Rs 8,044.26M from Rs 1,530.49M YoY; profit after tax reached Rs 658.54M versus Rs 11.01M, with EPS of Rs 10.89 versus Rs 0.18.

• Production and sales volumes increased across four-wheelers, three-wheelers and tractor wheel rims versus the prior-year quarter.

Financial highlights

• Net sales increased Rs 6,513.77M YoY to Rs 8,044.26M; gross profit rose Rs 1,317.44M to Rs 1,510.57M.

• Profit before tax increased to Rs 1,109.37M from Rs 20.28M; profit after tax was Rs 658.54M versus Rs 11.01M.

• Operating profit before finance cost was Rs 1,144.92M versus Rs 67.92M; finance cost declined to Rs 35.56M from Rs 47.65M.

• Total assets were Rs 10,888.64M at Sep. 30, 2023, versus Rs 7,685.13M at June 30, 2023; cash and bank balances were Rs 2,673.74M versus Rs 1,028.81M.

Outlook and guidance

• Three- and four-wheeler bookings were being received; higher orders from tractor assemblers supported wheel-rim demand, with revenue and profitability expected to increase in coming periods.

• Management was hopeful of an economic recovery in future periods as government remedial measures address the ongoing crisis.