Lahore: Sazgar Engineering Works Limited has reported significant financial growth in its third quarter and nine months ended March 31, 2025, against a backdrop of national economic stabilization efforts. The company's directors highlighted these developments in their review, underscoring the firm’s robust performance amid improving economic indicators.
On March 31, 2025, the company announced a notable increase in sales, gross profit, pre-tax profit, and earnings per share compared to the previous year. Sales rose by 16.68 billion, from Rs. 20.05 billion to Rs. 36.74 billion, while gross profit saw an increase of 6.16 billion, moving from Rs. 5.81 billion to Rs. 11.97 billion. Pre-tax profit increased by 5.21 billion, from Rs. 4.99 billion to Rs. 10.20 billion, and earnings per share grew from Rs. 50.20 to Rs. 103.06.
Over the nine-month period, sales surged by 46.85 billion, reaching Rs. 81.43 billion from Rs. 34.58 billion. Gross profit climbed by 15.87 billion, totaling Rs. 24.80 billion, while pre-tax profit increased by 13.70 billion to Rs. 21.04 billion. Earnings per share rose from Rs. 73.59 to Rs. 212.67. The company reported sales of Rs. 73.39 billion for four-wheelers, Rs. 7.47 billion for three-wheelers, and Rs. 0.57 billion for tractor wheel rims during this period.
According to information available from the Pakistan Stock Exchange (PSX), the auto sector experienced a substantial recovery in the third quarter of 2025. Sales volume improved by 31.33%, with the four-wheeler segment growing by 36.45% and the two- and three-wheeler segments increasing by 33.82% and 50.63%, respectively. However, the tractor segment faced a decline of 52.21%.
In response to its performance and the broader economic context, Sazgar Engineering has revised its expansion plans for its Four Wheelers Division. The updated plan includes expanding the paint shop, constructing new warehousing facilities, and installing a 5.7-megawatt solar system. The company is also looking to establish new manufacturing and assembly facilities for New Energy Vehicles, pending government approval. The cost for these expansions has been revised from PKR 4.50 billion to PKR 11.50 billion, to be funded through internal cash generation.
The company has declared a 1st interim cash dividend of Rs. 12 per ordinary share, totaling 120%, in addition to cumulative interim cash dividends of 200% already distributed this year.
The directors expressed confidence in the continued economic recovery, supported by strong remittance inflows, increasing exports, and monetary easing. The successful implementation of economic reforms is expected to foster a stable macroeconomic environment and promote growth in the industrial sector. The company anticipates that lower interest rates will enhance auto financing and vehicle demand in Pakistan.
Sazgar Engineering reiterated its commitment to delivering high-quality products with advanced features and exceptional after-sales service. The directors acknowledged the dedication of the company's employees and expressed gratitude to shareholders, customers, suppliers, and financial institutions for their ongoing support and trust.