November 19, 2021 (MLN): Amid various economic challenges encountered by the company including overall economic slowdown, currency fluctuations, supplies disruption etc, Al Ghazi Tractors Limited (AGTL) has managed to post a 2.5x YoY increase in net profits to Rs 2.2bn during 9MCY21 from Rs 889mn in the corresponding period last year.
This was reflected in the company’s earnings per share which went up from Rs15.34/sh to Rs38.21/sh.
The increase in profitability is largely attributable to lower core expenses as the company’s distribution and admin costs went down by 41.2% and 3.4% YoY while other operating expenses inched up marginally by 0.6% YoY.
During the period, AGTL’s sales have significantly increased by 65.7% YoY to Rs 15.2bn from Rs 9.18bn on the back of enhancing tractors demand due to improved economic activity, better farm conditions, subsidies on tractors and favourable government policies such as the Kamyab Kissan Scheme to promote the agriculture sector.
Accordingly, the gross margins of the company improved to 24% as compared to 22% in 9MCY20.
Among other lined items, the company’s finance cost declined significantly as it fell from Rs 130.2mn to Rs 8.36mn, marking a decline of 93.6% YoY may be due to securing potential refunds from the government.
On the taxation front, the company’s effective tax rate clocked in at 29% compared to 30% during 9MCY20.
|
Profit and Loss Account for the Nine Months Ended September 30th, 2021 (Rupees '000) |
|||
|---|---|---|---|
|
|
Sep-21 |
Sep-20 |
% Change |
|
Sales |
15,220,693 |
9,183,044 |
65.7% |
|
Cost of goods sold |
(11,639,095) |
(7,204,521) |
61.6% |
|
Gross Profit |
3,581,598 |
1,978,523 |
81.0% |
|
Distribution cost |
(103,701) |
(176,261) |
-41.2% |
|
Administrative expenses |
(259,631) |
(268,703) |
-3.4% |
|
|
3,218,266 |
1,533,559 |
109.9% |
|
Other income |
99,245 |
45,004 |
120.5% |
|
Other operating expenses |
(181,064) |
(179,908) |
0.6% |
|
|
3,136,447 |
1,398,655 |
124.2% |
|
Finance cost |
(8,363) |
(130,232) |
-93.6% |
|
Profit before taxation |
3,128,084 |
1,268,423 |
146.6% |
|
Taxation |
(913,346) |
(379,406) |
140.7% |
|
Profit after taxation |
2,214,738 |
889,017 |
149.1% |
|
Earnings per share – Basic and diluted (Rupees) |
38.21 |
15.34 |
149.1% |
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