Al-Ghazi Tractors' profit after tax reaches Rs2.61bn in 2023, up 21.14% YoY

March 25, 2024 (MLN): Al-Ghazi Tractors Limited (PSX: AGTL) unveiled its profit and loss statement for 2023, wherein the profit after tax clocked in at Rs2.61 billion [EPS: Rs45.06] compared to a profit of Rs2.16bn [EPS: Rs37.2] in the same period last year (SPLY).

Going by the results, the company's revenue from contracts with customers surged by 22.49% YoY to Rs34.54bn as compared to Rs28.2bn in SPLY.

The cost of sales of AGTL also grew 21.52% YoY to Rs28.12bn. However, as the rise in sales outpaced the growth in costs, the gross profit improved by 26.90% YoY to Rs6.42bn in 2023.

Resultantly, the gross margins improved to 18.59% as compared to 17.95% in SPLY.

On the expense side, the company observed a rise in Distribution expenses by 32.98% YoY and other expenses by 24.43% YoY to clock in at Rs429.46m and Rs429.81m respectively during the review period.

Likewise, AGTL's costs incurred as administrative expenses also spiked 2.01x YoY to Rs1.08bn in 2023.

The inflow through other income also came as a crucial support to the company's profit, standing at Rs560.09m in 2023 compared to Rs184.61m in 2022.

The company’s finance cost expanded by 45.45% YoY and stood at Rs356.4m as compared to Rs245.04m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs2.08bn against the Rs1.64bn paid in the corresponding period of last year, depicting a rise of 26.55% YoY.

Amount in thousand except for EPS

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