AGTL profit falls 35% on lower revenue, higher expenses

October 28, 2024 (MLN): Al-Ghazi Tractors Limited (PSX: AGTL) experienced a fall of 35.4% YoY in its quarterly bottom line, earning a profit after tax of Rs633.45 million [EPS: Rs10.97], compared to a profit of Rs980.78m [EPS: Rs16.92] in the same period last year (SPLY).

According to the results, the company's top line marked a decline of 44.7% to Rs6.3bn compared to Rs11.38bn in SPLY.

The cost of sales also fell by 51.3% but as the drop in sales was of a greater value, the gross profit worsened by 14.6% to Rs1.76bn in Q3 CY24.

Further worsening the situation, AGTL's other income marked a decline of 24.4% to stand at Rs46.97m in Q3 CY24 as compared to Rs62.1m in SPLY.

On the expense side, the company's administration expenses rose 29.6% YoY to Rs427.69m, and distribution and selling expenses increased 29.1% YoY to Rs184.66m.

Conversely, other operating expenses fell 82.5% YoY to Rs21.4m.

The company’s finance cost grew by and stood at Rs107.83m as compared to Rs110.35m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs433.22m against the Rs657.97m paid in the corresponding period of last year, depicting a fall of 34.2%.

Amount in thousand except for EPS

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