Millat Tractors Reports Rs. 9.9 Billion Profit, Up 194% in FY24

Millat Tractors Reports Rs. 9.9 Billion Profit, Up 194% in FY24

Millat Tractors Limited (PSX: MTL) has announced impressive financial results for the fiscal year ending June 30, 2024 (FY24), with a significant profit after tax (PAT) of Rs. 9.916 billion, translating to earnings per share (EPS) of Rs. 51.70. This marks a remarkable 194 percent increase from the previous year’s PAT of Rs. 3.378 billion (EPS of Rs. 17.61).

In the fourth quarter of FY24, the company reported a PAT of Rs. 2.057 billion (EPS of Rs. 10.72), reflecting a 64 percent rise compared to Rs. 1.251 billion (EPS of Rs. 6.52) in the same quarter of the previous year.

The company’s topline for FY24 surged by 107 percent year-on-year, reaching Rs. 91,509 million. This growth was driven by a 62 percent increase in volumetric sales, totaling 30,200 units, as noted in a review by Arif Habib Limited (AHL). During the fourth quarter, net sales rose by 58 percent year-on-year to Rs. 21,928 million, compared to Rs. 13,893 million in the same period last year.

Gross margins for FY24 improved to 22.6 percent from 20 percent in the previous year, primarily due to increased tractor prices, which helped offset high production costs. However, in the fourth quarter, gross margins were recorded at 20.7 percent, down from 25.4 percent in the same period last year.

Selling and distribution expenses for FY24 increased by 77 percent year-on-year to Rs. 1,898 million, driven by inflationary pressures and higher sales volumes. In the fourth quarter, these expenses rose by 42 percent year-on-year to Rs. 311 million.

Other income for FY24 surged by 2.2 times to Rs. 1,036 million, attributed to higher income from cash and cash balances. However, in the fourth quarter, other income declined by 61 percent year-on-year to Rs. 40 million. The company reported an effective tax rate of 42.6 percent in the fourth quarter, compared to 50.6 percent in the same period last year.

No final cash dividend was announced due to the pending merger of Millat Tractors Limited with Millat Equipment Limited, which is awaiting approval from the Lahore High Court. As a result, the total cash dividend for FY24 is limited to the already paid interim dividend per share (DPS) of Rs. 25.