Vehicle Industry in Misery: MTL’s income after tax drops by 78.59% YoY in 6MFY23

February 17, 2023 (MLN): Millat Tractors Limited (MTL) has revealed its six months profit and loss statement for the year ending December 31, 2022, as per which the profits after tax clocked in at Rs673.65 million (EPS: Rs5.80), decreasing by 78.59% YoY as compared to Rs3.15 billion (EPS: Rs27.07) in the same period last year (SPLY).

As per the statement sent to PSX, the net sales of the company reduced by 41.99% to stand at Rs14.52bn as compared to Rs25.03bn in the corresponding period last year.

Similarly, the gross profit of the company went down by 48.85% YoY to Rs2.81bn against Rs5.49bn in 1HFY22, while the cost of sales moved up by 40.06% YoY to Rs11.72bn this period.

On the cost front, MTL’s major expense head i.e., distribution and marketing cost swelled by 9.80% YoY to Rs556.6mn, and administrative expenses surged by 5.55% YoY to Rs527.15mn.

On the other hand, other operating expenses plunged by 38.42% YoY to Rs211.73mn against Rs343.83mn in 1HFY22.

The other income of the company has also declined by 49.10% YoY to Rs164mn in 1HFY23.

Meanwhile, the finance costs of the company climbed by 9.75x YoY to Rs614mn in the review period.

On the tax front, the effective tax rate was down by 69.02% in 1HFY23 to Rs386.52mn as opposed to Rs1.25bn in SPLY.

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