Millat Tractors Limited (MTL) has posted a profit after tax (PAT) of Rs. 2.127 billion in the first nine months of the current fiscal year (9MFY23), down 55 percent compared to PAT of Rs. 4.676 billion posted in the same period of the previous year (FY22).
According to the company’s unconsolidated results for the nine months period ended March 31, 2023, the company’s earnings per share (EPS) stood at Rs. 16.63 for the period under review compared to EPS of Rs. 36.57 reported in the same period of FY22.
The company posted a PAT of Rs. 1.28 billion in 3QFY23, down 23 percent compared to PAT of Rs. 1.656 posted in the same quarter of FY22. The company’s EPS for 3QFY23 stood at Rs. 10.01, compared to EPS of Rs. 12.95 reported in 3QFY22.
The company’s net sales settled at Rs. 16.9 billion in 3QFY23, up 23 percent compared to the same period of FY22 on the back of recovery in demand for tractors. This took sales in 9MFY23 to Rs. 30.3 billion, down 21 percent compared to the same period of FY22.
Gross margins were recorded at 17.2 percent in 3QFY23 compared to 20.3 percent in the same quarter of FY22. Gross margins also declined on a sequential basis by 131 bps, owing to increased cost pressure, due to inflated raw material costs as well as massive devaluation of the Pakistani rupee in the outgoing quarter.
Other income of the was recorded at Rs. 1.634 billion in 3QFY23, down 29 percent compared to the same quarter of the previous year due to reduction in cash and cash equivalents during the period as the company has been facing a liquidity crunch in lieu of a delay in sales tax refunds.
The company booked effective taxation at 21.7 percent in 3QFY23 compared to 28 percent in the same quarter of FY22.
