Millat Tractors Limited (PSX: MTL) has reported a substantial 37.53% year-on-year (YoY) decline in profit for fiscal year 2023, with earnings amounting to Rs3.38 billion [Earnings Per Share (EPS): 17.61], compared to the previous year’s profit of Rs5.41 billion [EPS: 28.19], as disclosed in the company’s filing on the Pakistan Stock Exchange (PSX).
Examining the financials, the company’s revenue decreased by 17.21% YoY to Rs44.19 billion, down from Rs53.37 billion in the Same Period Last Year (SPLY). Concurrently, the cost of sales also dropped by 18.13% YoY to Rs35.35 billion, compared to Rs43.18 billion incurred in FY22. Despite a more significant decline in the cost of sales relative to revenue, the gross profit declined by 13.29% YoY to Rs8.84 billion in FY23.
On the expenditure side, Millat Tractors witnessed a YoY increase in Distribution and marketing expenses by 15.36% and other expenses by 21.72%, totaling Rs1.07 billion and Rs790.28 million, respectively, during the reporting period. Similarly, other expenses increased by 14.96% YoY to Rs745.47 million, up from Rs648.46 million in FY22.
Other income declined by 48.83% YoY to reach Rs471.27 million in FY23, compared to Rs920.96 million in SPLY. Additionally, finance costs surged by 5.97 times YoY, reaching Rs1.36 billion, primarily due to higher interest rates.
The significant decline in revenue and other income, coupled with rising expenses, contributed to the notable drop in profitability. On the tax front, the company paid lower taxes amounting to Rs1.97 billion, a 39.46% YoY decrease from the Rs3.26 billion paid in the corresponding period of the previous year.
|PKR in ‘000||June 23||Jun-22||% Change|
|Cost of sales||-35,348,453||-43,176,940||-18.13%|
|Distribution and marketing expenses||-1,070,694||-928,162||15.36%|
|Net profit for the period||3,377,636||5,407,006||-37.53%|
|Earnings Per Share||17.61||28.19||–|
Latest posts by News Desk (see all)
- Oil Prices down amid Geo-Political Uncertainty - November 1, 2023
- Govt to borrow PKR8.5 trillion in Bond Auction till Jan-2024 - November 1, 2023
- Nishat Chunian Ltd: 1QFY24 profit rises 13 percent to PKR 500mn - October 31, 2023