Millat Tractors Limited (PSX: MTL) Monday announced financial results for the year ended June 30, 2024 (FY24) where it reported profit after tax (PAT) of Rs. 9.916 billion (EPS of Rs. 51.70), up 194 percent over PAT of Rs. 3.378 billion (EPS of Rs. 17.61) reported in FY23.
During 4QFY24, the company reported PAT of Rs. 2.057 billion (EPS of Rs. 10.72), up 64 percent over PAT of Rs. 1.251 (EPS of Rs. 6.52) billion reported in the 4QFY23.
Topline during FY24 surged by 107 percent over previous year clocking in at Rs. 91,509 million driven by a 62 percent year-on-year (YoY) rise in volumetric sales to 30.2k units, according to result review by Arif Habib Limited (AHL).
The review noted that during 4QFY24 net sales rose by 58 percent YoY to settle at Rs. 21,928 million in contrast to Rs. 13,893 million in SPLY.
The gross margins for FY24 arrived at 22.6 percent compared to 20 percent in SPLY primarily driven by an increase in tractor prices, effectively offsetting high production costs.
During 4QFY24, gross margins were recorded at 20.7 percent compared to 25.4 percent recorded in SPLY. Selling and Distribution expenses in FY24 climbed up by 77 percent YoY to clock in at Rs. 1,898 million amid inflationary pressure and increase in volumetric sales, we view.
In 4QFY24, selling and distribution expenses arrived at Rs. 311 million, up by 42 percent YoY. Other income surged by 2.2x YoY in FY24 to clock in at Rs. 1,036 million, due to higher income from cash and cash balances. However, in 4QFY24, the other income arrived at Rs. 40 million, depicting a decline of 61 percent YoY. The company booked effective taxation at 42.6 percent in 4QFY24 against 50.6 percent in 4QFY23.
No final cash dividend was announced as the merger of Millat Tractors Limited with Millat Equipment Limited is pending approval from the Lahore High Court, during which the company cannot pay further dividends. As a result, for FY24, the total cash dividend is limited to the already paid interim DPS of Rs. 25.
Results based on unconsolidated statement.
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