AKD Research has published a report on the Sazgar Engineering Works Ltd. (SAZEW) whihc held its analyst briefing to discuss FY25 results and its future outlook.

The following are the key highlights:

To recall, the company posted a topline of PkR 108.7 billion in FY25, up from PkR 57.6 billion in FY24, representing an 89% year-over-year increase. The said increase is primarily attributed to higher volumetric sales of four-wheelers, particularly HAVAL.

· Company posted earnings of PkR16.3bn (EPS: PkR270.3) in FY25, compared to PkR7.9bn (EPS: PkR131.3) in SPLY, an increase of 106%YoY.

· Gross margins for FY25 clocked in at 29.1% vs 27.1% in SPLY. Management expects margins to remain elevated until the expiration of the Auto policy till FY26.

· Management briefed that there have been no major distortions in the supply chain due to ongoing flooding, given that the majority of raw materials are sourced from China.

https://research.akdsl.com/638943987125491537.pdf

Courtesy – AKD Research