Karachi: Sazgar Engineering Works Limited has announced a substantial final cash dividend and ambitious expansion plans for its manufacturing facilities, according to a recent disclosure compliant with the Securities Act, 2015, and Pakistan Stock Exchange Regulations.
On September 23, 2024, the Board of Directors convened to finalize several key financial decisions for the fiscal year ending June 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), the Board has declared a final cash dividend of 120% of the paid-up share capital, translating to Rs 12.00 per ordinary share. This decision follows an earlier interim dividend payment of 80%, or Rs 8.00 per share.
The company’s growth strategy includes the expansion of the current paint shop and the construction of new warehousing facilities, alongside the installation of a 4-megawatt solar system. Furthermore, new manufacturing capabilities are set to be developed for the local assembly of New Energy Vehicles (NEVs). These projects, expected to cost PKR 4.50 billion, will be funded through internal cash reserves, pending regulatory approval.
Additionally, the rollout of Completely Knocked Down (CKD) models of NEVs is targeted for completion before December 31, 2025. The expansion aims to enhance Sazgar's manufacturing output and its position in the evolving automotive market.
In terms of executive compensation, effective from July 1, 2024, the monthly managerial remuneration for Chief Executive Mian Asad Hameed will increase to Rs 4,600,000. Saeed Iqbal Khan, Executive Director of the Three-Wheelers and Automotive Parts Division, will receive Rs 2,400,000, and Mian Muhammad Ali Hameed, Executive Director of the Car Division, will have his remuneration set at Rs 1,250,000. These changes reflect the company’s acknowledgment of the critical roles these executives play in its operations.
For the fiscal year 2024, Sazgar reported a significant jump in net sales to Rs 57.64 billion, up from Rs 18.17 billion in the previous year. After deducting costs, the gross profit stood at Rs 15.65 billion, a substantial increase from Rs 2.55 billion in 2023. The net profit after taxation surged to Rs 13.12 billion, marking a profound increase from Rs 1.48 billion a year earlier, with earnings per share rising to Rs 131.29 from Rs 16.46.
These financial outcomes highlight Sazgar Engineering Works Limited's robust growth trajectory and its strategic focus on expanding its product lines and operational capacities.