Karachi February 23 2022: SAZGAR Engineering Works (SAZEW) is working on a fast track to complete the manufacturing facilities for the local assembly/ production of “HAVAL” vehicles in Pakistan, as per company filling to the exchange.
It is estimated that the company shall achieve its target date of June 30, 2022 for completion of these manufacturing facilities.
The Company is also looking for introduction of hybrid vehicles in SUV category.
SAZEW has commenced a marketing campaign for the BAIC vehicles particularly BJ-40 which will positively affect on the booking of vehicles in the next quarter. Further it is also hoped that the supply chain of BJ-40 CKD will improve and help to increase the production of these vehicles.
The Company is making all its possible measures to increase the sales volume of three wheeler and tractor wheel rims in the period to come. The company is expecting better financial results in the next quarter as compared to the corresponding period of last financial year. However, the constant fluctuation in currency exchange rate, rising trend in interest & inflation rates and unstable economic conditions along with new waves of COVID-19 may adversely affect the business volume in the periods to come.
The financial results for the 2 nd quarter and cumulatively half year are showing an improvement in financial position of the Company compared with the corresponding period of last financial year mainly on account of revenue from sale of imported CBU vehicles under brand “HAVAL”. The company has successfully established the brand image of “HAVAL” and marked its suitable position in the SUV market.
The production of “BAIC” branded vehicles remained disturbed due to the pending shipments of imported components from China. The Company is making efforts to manage the shipments in shortest possible time which will help to increase the production of BAIC vehicles in subsequent periods.
The sales volume of three wheelers and tractor wheel rims declined during this quarter as compared to corresponding period of last financial year due to decrease in demand ofthese products from the respective buyePKR
During the 2nd quarter, the sales has increased by 189.35 percent from PKR 809.94 million to PKR 2,343.59 million, gross profit by 134.32 percent from PKR 79.00 million to PKR 185.12 million and pre-tax profit by 242.61 percent from PKR 27.75 million to PKR 95.08 million compared with corresponding period of last year.
The half year sales has increased by 136.93 percent from PKR 1,778.27 million to PKR 4,213.34 million, gross profit by 122.12 percent from PKR 171.55 million to PKR 381.04 million, and pre-tax profit by 270.89 percent from PKR 57.90 million to PKR 214.73 million and earning per share from PKR 0.36 (re-stated) to PKR 1.54 as compared with the corresponding period of last year. The current half year sale is comprised of PKR 2,663.03 million of Four Wheeler including sale of imported vehicles, PKR 1,254.11 million of Three Wheeler and PKR 295.99 million of tractor wheel rims.
Sazgar Engineering Works Limited was incorporated in Pakistan on September 21, 1991 as a Private Limited Company and converted into a Public Limited Company on November 21,1994. The Company is engaged in the manufacture and sale of automobiles, automotive parts and household electric appliances.
