September 5, 2019 (MLN): Millat Tractors (MTL), the largest tractor manufacturing company in the country has announced its financial results today, as per which the company reported its net annual profits for the year ended on June 30th 2019 has declined by 41% YoY to Rs 3.5 billion (EPS: Rs79.36) from Rs 5.9 billion (EPS: Rs134.64) earned last year.
Due to weak economic conditions and lower demand of tractors from agriculture sector along with higher interest rates, MTL’s net sales slumped by 19% YoY to Rs 32 billion. Thus, declined company’s gross profits by 34% YoY.
During the period, the company also witnessed a decline in income earned from other sources by 26% on account of lower dividend income from subsidiaries and interest income from bank deposits.
On the expenses side, the company’s admin expenses, distribution expenses and other operating expenses dropped by 1.24%, 4.4% and 6.9% respectively, which provided a cushion to the earnings.
Moreover, the decrease in tax payments by 46.5% YoY also provided some relief to the company, but it was not enough to prevent a fall in company’s profitability.
|
Consolidated profit and loss account for the year ended June 30th 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-19 |
Jun-18 |
% Change |
|
Sales- net |
32,030,959 |
39,586,362 |
-19.09% |
|
Cost of sales |
25,202,514 |
29,129,335 |
-13.48% |
|
Gross profit |
6,828,445 |
10,457,027 |
-34.70% |
|
Distribution and marketing expenses |
698,181 |
730,588 |
-4.44% |
|
Administrative expenses |
758,197 |
767,708 |
-1.24% |
|
Other operating expenses |
641,139 |
689,062 |
-6.95% |
|
|
2,097,517 |
2,187,358 |
-4.11% |
|
Other income |
468,793 |
635,902 |
-26.28% |
|
Operating profit |
5,199,721 |
8,905,571 |
-41.61% |
|
Finance costs |
121,552 |
20,190 |
502.04% |
|
Profit before tax |
5,078,169 |
8,885,381 |
-42.85% |
|
Taxation |
1,562,972 |
2,921,862 |
-46.51% |
|
Profit for the year |
3,515,197 |
5,963,519 |
-41.05% |
|
Basic and diluted earnings per share (Rupees) |
79.36 |
134.64 |
-41.06% |
Copyright Mettis Link New
29815
