Sazgar Engineering Works (SAZEW) Q3 2024 earnings summary

Executive summary

• Q3 sales revenue rose 150.26% YoY; 9M sales reached Rs 34.58bn, with 9M profit after tax of Rs 4.45bn and EPS of Rs 73.59.

• Performance was led by four-wheelers, while new EV and HEV models, an EV-rickshaw manufacturing license and planned adjacent land acquisition supported expansion plans.

Financial highlights

• Q3 sales were Rs 20.05bn vs Rs 8.01bn YoY; gross profit Rs 5.81bn vs Rs 0.98bn; profit before tax Rs 4.99bn vs Rs 0.66bn.

• Q3 profit after tax was Rs 3.03bn vs Rs 444.63m; basic EPS was Rs 50.20 vs Rs 7.36.

• 9M sales were Rs 34.58bn vs Rs 12.79bn; gross profit Rs 8.93bn vs Rs 1.49bn; profit before tax Rs 7.34bn vs Rs 756.54m.

• 9M profit after tax was Rs 4.45bn vs Rs 523.75m; basic EPS was Rs 73.59 vs Rs 8.66.

Outlook and guidance

• Demand for products is expected to increase in the next quarter, supporting higher sales volume and profitability.

• Priorities include maintaining uninterrupted raw-material and CKD supply and expanding EV and HEV offerings.

• Government reforms under the IMF SBA and a prospective further IMF program were expected to support stability; the anticipated US$1.10bn disbursement was expected to bolster reserves and the rupee.