MTL struggles in Q3 with declining sales, rising finance costs

October 25, 2024 (MLN): Millat Tractors Limited (PSX: MTL) unveiled its profit and loss statement, wherein the profit after tax clocked in at Rs569.21 million [EPS: Rs2.97] for the quarter ended September 30, 2024.

This marks a significant decline of 75.16% compared to the bottom line of Rs 2.29 billion [EPS: Rs 11.95] reported in the same period last year (SPLY).

According to the profit and loss statement, the 62.3% drop in sales was the major factor leading to the challenging financial close.

The cost of sales also fell by 64.6% but as sales declined by a greater value, the gross profit dropped 54.5% to Rs2.18bn in Q3 CY24.

During the period under review, other income dipped 61.1% to stand at Rs58.37m in Q3 CY24 as compared to Rs149.88m in SPLY.

On the expense side, the company's administration expenses rose 34.5% YoY to Rs311.67m.

On the other hand, distribution and selling expenses fell 28.9% YoY to Rs354.97m, and other operating expenses dropped 77.1% YoY to Rs71.32m.

The 178.9% spike in finance costs, clocking in at Rs544.82m was another factor leading to the profit drop.

On the tax front, the company paid a lower tax worth Rs388.46m against the Rs1.42bn paid in the corresponding period of last year, depicting a fall of 72.7%.

Amount in thousand except for EPS

Copyright Mettis Link News