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

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MG News | February 19, 2025 at 12:41 PM GMT+05:00

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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.

Consolidated Profit and Loss For The Period Ended December 31, 2024 (Rupees in '000)
  Dec-24 Dec-23 %Change
Revenue from contracts with customers 28,896,877 46,267,420 -37.54%
Cost of sales (20,654,709) (34,290,264) -39.77%
Gross profit 7,642,168 11,977,156 -36.19%
Distribution and marketing expenses (980,389) (1,039,046) -5.65%
Administrative expenses (1,015,046) (855,557) 18.64%
Other operating expenses (657,932) (740,688) -11.17%
Other income 197,790 549,179 -63.98%
Operating profit 5,186,591 9,891,044 -47.56%
Finance cost (1,197,851) (475,139) 152.11%
Profit before income taxes and levies 3,988,740 9,415,905 -57.64%
Levy - final taxes (7,505) (73,738) -89.82%
Profit before income tax 3,981,235 9,342,167 -57.38%
Taxation (362,133) (3,702,696) -90.22%
Profit after tax for the period 3,619,097 5,639,471 -35.83%
Other comprehensive income / (loss) (235,846) (255,341) -7.63%
Total comprehensive income for the period 3,383,281 5,384,130 -37.16%
Earnings per share - basic and diluted (Rupees) 18.87 29.4 -35.82%

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