Sazgar Engineering Works Limited reported its highest-ever annual profit after tax of Rs. 23.6 billion in fiscal year 2026, marking a 44 percent increase from the previous year, according to a result review by Arif Habib Limited.
The company also posted its highest ever quarterly profit of Rs. 8.7 billion in the fourth quarter, up 151 percent year-on-year (YoY) and 36 percent quarter-on-quarter (QoQ).
The company declared a cash dividend of Rs. 20 per share for the fourth quarter, taking its total dividend payout for fiscal year 2026 to Rs. 70 per share.
Sazgar Engineering’s annual revenue rose 76 percent to Rs. 191.7 billion, supported by a 77 percent increase in four wheeler sales (Haval, GWM etc) to 19,179 units.
Revenue for the fourth quarter jumped 181 percent YoY and 62 percent QoQ to Rs. 76.5 billion, with four-wheeler volumes reaching 6,549 units, more than double the level recorded a year earlier. The company sold around 1,370 Tank units during the quarter.
Despite the strong increase in sales, the company’s gross margin declined to 24.2 percent in fiscal year 2026 from 29.1 percent a year earlier.
Fourth quarter gross margin stood at 22.3 percent, compared with 25.1 percent in the same period last year. AHL attributed the decline mainly to a change in product mix and the impact of rupee depreciation.
Distribution expenses increased 78 percent YoY to Rs. 6.2 billion during fiscal year 2026, while fourth quarter distribution expenses rose 124 percent, mainly due to deliveries of the newly launched Tank 500.
Other income increased 96 percent annually to Rs. 2.7 billion, while fourth quarter other income rose 108 percent YoY to Rs. 667 million, which the brokerage attributed to higher deposits.
Finance costs increased 97 percent YoY to Rs. 454 million for fiscal year 2026, mainly due to higher long-term financing. Fourth quarter finance costs reached Rs. 153 million, up 5.3 times YoY and 50 percent QoQ.
The effective tax rate stood at 38.7 percent during the fourth quarter, compared with 38.9 percent in the same period last year.
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