MTL’s profit drops to Rs3.6bn in H1 FY24

February 19, 2025 (MLN): Millat Tractors Limited (PSX: MTL) unveiled its profit and loss statement, wherein the profit after tax clocked in at Rs3.64 billion [EPS: Rs18.87] for the six-month period ended December 31, 2024.

This reflects a decline of 35.83% compared to the bottom line of Rs5.21bn [EPS: Rs29.40] reported in the same period last year (SPLY).

According to the profit and loss statement, the 37.54% drop in revenue was the primary factor behind the weaker financial results.

The cost of sales also declined by 39.77%, but due to the sharper decline in revenue, the gross profit fell by 36.19% to Rs7.64bn.

During the period under review, other income plummeted by 63.98%, standing at Rs197.79 million compared to Rs549.18mn in SPLY.

Meanwhile, administrative expenses rose by 18.64% YoY, whereas distribution and marketing expenses decreased by 5.65%. Other operating expenses also saw a decline of 11.17%.

A major factor contributing to the decline in profitability was the 152.11% surge in finance costs, which reached Rs1.19bn.

On the tax front, the company paid Rs362.13mn in taxes, marking a steep decline of 90.22% from Rs3.7bn in the corresponding period last year.

Consequently, the total comprehensive income for the period stood at Rs3.38bn, reflecting a 37.16% year-over-year decline.

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