MTL’s net earning clocks in at Rs3.14bn in 1HFY22

MG News | February 22, 2022 at 03:52 PM GMT+05:00

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February 22, 2022 (MLN): The profitability of Millat Tractors Limited (PSX: MTL) is clocked in at Rs3.14 billion, up by around 7% YoY in 1HFY22, compared to Rs2.94bn in the corresponding period last year, the company filing on PSX showed on Tuesday.

The earnings per share of the company stood at Rs46.78 as opposed to Rs43.75 reported in Rs1HFY21.

The MTL is a market leader of tractor assemblers in Pakistan having around 68% market share. The Net sales of the company increased by 28.58% YoY due to a 21% YoY increase in volumetric sales to 10,057 units coupled with increased prices, a report by Arif Habib Limited noted.

The growth in volumes attributable to excess export order, improving yields of farmers, and the government incentives including interest-free loans and Kissan cards, bodes well for the company.

The other income of the company witnessed a significant jump of 72% YoY due to higher dividends from subsidiaries.

On the cost front, there was an upsurge noted in MTL’s distribution, marketing, and admin expenses by 25.52% YoY and 14.52% YoY, respectively.

In addition, the finance cost of the company has soared by 41% YoY to stand at Rs1.24bn in 1HFY22.

MTL has strategically invested in subsidiaries (i.e. Millat Industrial Products, TIPEG, Millat Equipment and Bolan Castings) which support its core activities leading to efficiencies.

Moreover, MTL also has a 15.9% stake in Hyundai Nishat Motors, which has grown to become a significant player in the passenger car segment, offering huge earnings potential, a report by Taurus Securities noted.

Consolidated profit and loss account for the half-year ended December 31st 2021 ('000 Rupees)
	Dec-21	Dec-20	% Change
Sales- net	25,030,712	19,466,742	28.58%
Cost of sales	19,545,653	14,368,364	36.03%
Gross profit	5,485,059	5,098,378	7.58%
Distribution and marketing expenses	506,945	403,887	25.52%
Administrative expenses	499,412	436,092	14.52%
Other operating expenses	343,833	315,281	9.06%
	1,350,190	1,155,260	16.87%
Other income	322,875	187,776	71.95%
Operating profit	4,457,744	4,130,894	7.91%
Finance costs	63,021	44,703	40.98%
Profit before tax	4,394,723	4,086,191	7.55%
Taxation	1,247,740	1,143,345	9.13%
Profit for the period after tax	3,146,983	2,942,846	6.94%
Basic and diluted earnings per share (Rupees)	46.78	43.75	6.93%

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