Sazgar Engineering Works Limited announced a profit of Rs. 4.04 billion for the first quarter of fiscal year 2027, marking a 9 percent year over year decline and a 54 percent drop compared to the previous quarter. Topline Securities noted that earnings per share dropped to Rs. 66.77, though the performance surpassed industry forecasts because of better-than-expected gross margins.
Net sales climbed 23 percent compared to last year, reaching Rs. 41.71 billion, driven by the introduction of the Tank 500 to the product range. Annual four-wheeler sales dropped 12 percent to 3,137 units, whereas three-wheeler sales grew 45 percent to reach 7,735 units. Additionally, Sazgar declared an interim cash dividend of Rs. 5 per share, which fell short of market projections.
The gross profit margin declined to 20 percent from 25 percent in the prior year, driven partly by an increased general sales tax on hybrid and plug-in hybrid electric vehicles. Driven by higher long-term borrowings, finance costs surged 4.2 times compared to the same period last year. The effective tax rate for the firm was 37 percent, down from 39 percent in the corresponding quarter of the previous year.
