Sazgar Engineering Works (SAZEW) Q4 2024 earnings summary

Executive summary

• FY2024 net sales reached a record Rs. 57.64bn, up 217.16% YoY; net profit rose to Rs. 7.94bn from Rs. 995.1m, driven mainly by four-wheeler demand, particularly HAVAL.

• Sales volumes increased across four-wheelers, three-wheelers and tractor wheel rims; the annual report also highlighted new EV and HEV offerings and planned expansion of four-wheeler manufacturing.

Financial highlights

• Net sales Rs. 57.64bn vs Rs. 18.17bn; gross profit Rs. 15.65bn vs Rs. 2.55bn; operating profit Rs. 13.45bn vs Rs. 1.72bn, FY2024 vs FY2023.

• Profit before tax Rs. 13.12bn vs Rs. 1.48bn; net profit Rs. 7.94bn vs Rs. 995.1m; EPS Rs. 131.29 vs Rs. 16.46.

• EBITDA Rs. 13.57bn, up 620.48% YoY; operating cash flow Rs. 8.96bn and year-end cash and bank balances Rs. 7.76bn.

• Gross margin rose to 27.14% from 14.03%; finance cost was Rs. 168.91m vs Rs. 168.36m.

Outlook and guidance

• FY2025 outlook anticipates continued growth in sales volume and profitability, with export inquiries progressing toward orders; growth remains subject to economic recovery, customer preferences and competition.

• Four-wheeler facility expansion is planned to include paint-shop expansion, warehousing, a 4MW solar installation and local NEV assembly; CKD model rollout targeted before December 31, 2025, subject to regulatory approval.

• HEV/EV offerings are a strategic focus as fuel costs shift SUV demand toward hybrids; management cited 40–50% average petrol savings for HEVs.