Millat Tractors Limited (MTL) announced its financial result for 9MFY24 today, posting a PAT of PKR 7,860mn (EPS: PKR 40.98), up by 3.7x YoY. During 3QFY24, the profitability of the company clocked in at PKR 2,631mn (EPS: PKR 13.63) compared to a profit of PKR 1,280mn (EPS: PKR 6.67) in 3QFY23, up by 2x YoY.

Result Highlights       

Net sales during 9MFY24 clocked in at PKR 69,580mn contrast to PKR 30,297mn in SPLY, depicting a surge of 2.3x YoY. On a quarterly basis, the topline climbed up by 47% YoY to arrive at PKR 24,886mn during 3QFY24 on the back of upward revisions in tractor prices and an increase in volumetric sales.

During 9MFY24 gross margin arrived at 23.2% compared to 17.5% during SPLY. During 3QFY24, gross margins rebounded impressively to reach 22.7% compared to 17.2% recorded in SPLY which was primarily driven by an increase in tractor prices, effectively offsetting high production costs.

Other income witnessed a massive jump of 5.6x YoY to PKR 305mn during 3QFY24, amid higher income from cash and cash balances during the period.

Finance cost declined to PKR 224mn, down by 34% YoY on account of a decline in short-term borrowings.

The company booked effective taxation at 35% in 3QFY24 vis-à-vis  22% in 3QFY23.

Courtesy – AHL Research