Millat Tractors, which is the largest tractor manufacturing company in Pakistan, has announced its financial results for the half year ended December 31st 2018(1HY19).
The company reported a profit of Rs. 1.82 billion, down 34.3% from Rs. 3.12 billion in the corresponding period last year. The decline in profits was due to lower volumetric sales, low gross margins and higher expenses during the period under view.
The company reported net sales of Rs. 15.60 billion, which were down 14.38% from Rs. 18.22 billion last year. However, the cost of sales reduced by 9.43% to Rs. 12.68 billion against Rs. 14 billion resulting in a gross profit of Rs. 2.91 billion against Rs. 4.21 billion.
During the half year, the company sold 16,110 units in the period under view, down by 20.07% as compared with 20,154 units in the corresponding period previous year .
During the 2nd quarter, the company sold 6,096 units, down 40%, due to a plant maintenance shutdown. The company still commanded 66% of the industry sales which is higher than its current market share of 60%.
Overall expenses grew to Rs. 933 million, up 12% as compared with Rs. 833 million in 2017. The finance cost also saw a jump of Rs. 23.49 million.
The decrease in tax payments provided some relief to the company, but it was not enough to prevent a fall in profits. It was noted at Rs. 706 million, down from Rs. 1.15 billion in the corresponding period.
MTL’s shares at the bourse were trading at Rs. 860, up Rs. 1.44 or 0.17%, with a turnover of 4050 shares on Friday.