Sazgar Engineering Works Limited reported a profit of Rs. 4.04 billion in the first quarter of fiscal year 2027, down 9% year over year and 54% quarter over quarter. Earnings per share fell to Rs. 66.77, while the company’s results exceeded industry expectations due to stronger-than-expected gross margins, according to Topline Securities.
The company’s net sales increased 23% year over year to Rs. 41.71 billion, supported by the addition of the Tank 500 to its lineup. However, four-wheeler sales declined 12% annually to 3,137 units, while three-wheeler sales rose 45% to 7,735 units. Sazgar also announced an interim cash dividend of Rs. 5 per share, lower than market expectations.
Gross profit margin dropped to 20% from 25% a year earlier, partly due to higher general sales tax on hybrid and plug-in hybrid electric vehicles. Finance costs also increased 4.2 times year over year because of higher long-term borrowings. The company’s effective tax rate stood at 37%, compared with 39% in the same quarter last year.
