SAZEW profit falls 8.6% to Rs4.04bn, declares Rs5 dividend

Sazgar Engineering Works SAZEW reported net profit of Rs4.04bn for the three months ended 30 September 2026, down 8.6% from Rs4.42bn in the same period a year earlier. The board also declared an interim cash dividend of Rs5 per share.

Net sales increased 23.3% to Rs41.71bn in 1QFY27 from Rs33.82bn in 1QFY26. Cost of sales rose 31.2% to Rs33.20bn from Rs25.30bn, leaving gross profit at Rs8.51bn, compared with Rs8.52bn a year earlier. Higher cost of sales, distribution expenses and finance costs outweighed the increase in sales.

Distribution and marketing costs rose 72.4% to Rs1.66bn from Rs964.06m. Administrative expenses were Rs218.29m, up 5.7%, while other operating expenses fell 10.2% to Rs486.78m. Total operating expenses increased 38.2% to Rs2.37bn, and operating profit declined 9.7% to Rs6.15bn.

Other income increased 22.4% to Rs628.66m from Rs513.72m. Finance costs rose to Rs333.55m from Rs79.23m, while profit before taxation decreased 11.1% to Rs6.44bn. Taxation was Rs2.41bn, down 14.8% from Rs2.83bn, and basic and diluted earnings per share fell to Rs66.77 from Rs73.07.