Hifsa Raja

Sazgar Engineering Works Limited sales climbed 135% to Rs7 billion in the first nine months (July-March) of the previous fiscal year 2021-22 (9MFY22) compared with Rs3 billion in the corresponding period of FY21.

The company manufactures and sells automobiles, automotive parts and appliances.

Similarly, the gross profit, showing a 91% growth, increased to Rs557 million in 9MFY22 from Rs291 million in 9MFY21.

The operating profit climbed to Rs321 million in 9MFY22 compared to Rs121 million over the same period of FY21, posting 165% growth year-on-year.

Profit-before-tax in 9MFY22 leapt to Rs290 million from Rs100 million in 9MFY21, registering a massive growth of 190%.

The profit-after-tax jumped to Rs117 million in 9MFY22 from Rs67 million in 9MFY21, posting a hefty growth of 76%.

This remarkable increase in net profit pushed the earnings per share to Rs1.95 in 9MFY22 from Rs1.11 in 9MFY21, reports WealthPK.

As of June 30, 2021, directors, their spouse(s) and minor children owned 65.98% of shares, banks, development financial institutions, non-banking financial institutions 0.17%, insurance companies 7.51%, Modarabas and mutual funds 1.39%, general public (local) 21.06%, (foreign) 0.1% and “others” owned 3.6% shares of the company, respectively.

Financial Performance

During the fiscal year 2020-21, the company generated sales of Rs4 billion over Rs2.9 billion in 2019-20, registering an increase of 39%. 

The gross profit jacked up to Rs366 million in FY21 from Rs293 million in FY20, posting a 25% growth year-on-year.

Operating profit in FY21 improved to Rs125 million from Rs104 million in FY20, showing a 20% growth year-on-year.

Net income for FY21 stood at Rs75 million, up 174%, from Rs27 million in FY20.

The earnings per share (EPS) dropped steeply from Rs8.62 in 2018 to Rs3.04 in 2019. It further dropped to Rs0.7 in 2020 before slightly improving to Rs1.63 in 2021.

Profit or loss over the years

Profitability, including gross and operating profits, remained high in 2018 compared to 2017. In 2021, the gross profit had a healthy growth, but the operating profit dipped compared to 2018 and 2019.

Sazgar Engineering Works Limited was incorporated in Pakistan on September 21, 1991, as a private limited company. It was converted into a public limited company on November 21, 1994.

Credit : Independent News Pakistan-WealthPk