Millat Tractors Limited has stated that the Company, for the nine months ended March 31, 2022, despite the liquidity constraints due to nonpayment of sales tax refunds, has managed to achieve sales of 25,866 units during this period compared to 25,915 units in the comparative period.
The latest report of Company says that the revenue from sales has increased to Rs. 38.361 billion from Rs. 31.375 billion in the comparative period, representing an increase of 22%.
The EPS for the Nine months ended March 2022 witnessed an increase to Rs. 58.11 in contrast to EPS of Rs. 53.28 in the corresponding period last year.
The Russian- Ukraine war has taken its toll by making energy prices dearer and unprecedented inflation levels worldwide. The increased international logistic costs and energy costs have resulted in a sharp rise in raw materials prices. Trade with Afghanistan is still at a standstill; however, your Company is trying to achieve a breakthrough.
The Pakistani Rupee (PKR) is still struggling against the US dollar. The current political situation has further resulted in uncertainty in the investment climate in the country. The average inflation is forecasted at 11% during 2022, and the current account deficit is still expected to be around 4 per cent of GDP in FY22. While the non-oil current account balance has improved, the overall existing account remains dependent on global commodity prices.
The SBP foreign reserves are declining, and all these factors led to an increase of 250 basis points in the policy rate to 12.25 per cent. This increase will further fuel the inflation rates in the country. The relative stability in overall tractor prices is due to the high localization level of tractor parts.
The Agriculture sector is expected to continue its growth. Exports of tractors to traditional markets have declined. However, the Company is now exploring new markets globally to achieve a stable growth level. The increase in wheat support price will further ease the farming community to cope with the rising inflation and spend on farm mechanization, and accordingly, we are optimistic on the tractor led growth.