Al Ghazi Tractors Limited (AGTL) reported earnings of Rs. 693 million in the third quarter ending September 30. Its earning are up by a massive 150% compared to Rs. 278 million in the same period of last year, according to a company notice to Pakistan Stock Exchange (PSX).
Earnings per share (EPS) increased to Rs. 11.97 from an EPS of Rs. 4.81 in the period under review.
The sales of the third quarter are up by a massive 144% to Rs. 4.4 billion as compared to Rs. 1.82 billion in the same period last year. The gross profit had a huge surge of 147.5% in this quarter. The administrative expenses remained flat.
AGTL has shown stupendous YoY growth backed by 134% increase in tractor sales (amid lower GST and recovery in farmer income).
In Q3 2017, tractor sales were down by 3% QoQ to 5,672 units while margins stood at 26% (Q2 2017: 28%).
An interim dividend for the third quarter was also announced at Rs. 25 per share. This is an addition to the interim dividends already paid at Rs. 37.5 per share i.e. over 750%.
Cumulatively, the company’s earnings were up by 81% to Rs. 2.28 million in first nine months this year from Rs. 1.1 billion in the same period last year.
AGTL script was trading at Rs. 614 or +2.36% at the bourse on Wednesday.
China-Pakistan Economic Corridor and construction of farm-to-market roads have also given a tremendous boost to the depressed tractor industry in Pakistan as farm tractors are being used for multiple purposes in rural areas. A large number of farm tractors are also being utilized for the under-construction CPEC projects, which are a collection of infrastructure projects throughout Pakistan.
Its overall production capacity is 30,000+ Tractors per annum in a single shift.