MTL is scheduled on 27 Oct’21 to announce the financial result for 1QFY22

The board meeting of Millat Tractors Limited (MTL) is scheduled on 27th Oct’21 to announce the financial result for 1QFY22. As per our expectations, earnings may clock-in at PKR 1,044mn (EPS: PKR 15.51), down by 8% YoY and 29% QoQ compared to PKR 1,135mn (EPS: PKR 16.87) and PKR 1,480mn (EPS: PKR 22.00), respectively.

Despite similar volumes of 7,197 units in 1QFY22 compared to 7,225 units in 1QFY21, we expect net sales of the company to surge by 13% YoY to PKR 9,593mn given multiple increase in tractor prices and change in sales mix.

Other income is expected to grow massively by 139% YoY to PKR 167mn. On a sequential basis, net sales of the company is expected to decline by 24% QoQ given 25% QoQ decline in tractor sales (units sold 9,600 in 4QFY21). That said, we expect margins to settle at 18.95%, down by 306 bps YoY and 59bps QoQ due to depreciation of PKR and surge in prices of raw material.

Courtesy – AHL Research

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