Millat Tractor's profit declines by 38% YoY to Rs3.38bn in FY23

September 25, 2023 (MLN): Millat Tractors Limited (PSX: MTL) 's profit has significantly declined by 37.53% YoY, to Rs3.38bn [EPS: 17.61] in fiscal year 2023 compared to Rs5.41bn [EPS: 28.19] profit reported in the Same Period Last Year (SPLY), as revealed through the company's filing on PSX today.

Going by the results, the company's top line dipped by 17.21% YoY to Rs44.19bn as compared to Rs53.37bn in SPLY.

The cost of sales also fell by 18.13% YoY to Rs35.35bn compared to the Rs43.18bn incurred in FY22.

Despite a greater than proportionate drop in the company's cost of sales compared to its sales, the gross profit fell by 13.29% YoY to Rs8.84bn in FY23.

On the expense side, the company observed an increase in Distribution and marketing expenses by 15.36% YoY and other expenses by 21.72% YoY to clock in at Rs1.07bn and Rs790.28m respectively during the review period.

Similarly, the other expenses of MTL rose by 14.96% YoY to Rs745.47m against Rs648.46m clocked in FY22.

During the period under review, other income went down by 48.83% YoY to stand at Rs471.27m in FY23 as compared to Rs920.96m in SPLY.

The company’s finance costs inflated by 5.97x YoY and stood at Rs1.36bn compared to Rs227.42m in FY23, mainly due to higher interest rates.

The decline in revenue and other income, coupled with an increase in the company's expenses, resulted in this significant drop in profitability.

On the tax front, the company paid a lower tax worth Rs1.97bn against the Rs3.26bn born in the corresponding period of last year, depicting a fall of 39.46% YoY.

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