Millat Tractor Limited (PSX: MTL) has reported a significant 25% YoY surged in net profits for the nine months ended on March 31, 2020, to Rs 1.20 billion compared to Rs 2.66 billion in the same period of last year.
The earnings per share of the company declined by 55% to Rs 24.13 per share. The decline in earnings is attributable to the contraction in sales volume on the back of lower yields of farmers on agriculture products, resulting in lower demand for tractors.
During the period, the company’s net revenues witnessed a negative growth 28% YoY to Rs. 16.85 Bn.
While the gross profit also declined to Rs. 13.64 Bn n 9MFY20 as compared to last year. MTL’s Other income declined significantly from 398.6 to Rs. 116.1 Mn YoY basis.
On the other hand, Finance cost soared by 3.5 times YoY, from Rs 89 million to Rs 316 billion.
On the expense front, the distribution and marketing expenses of the company remained flat while the other operating charges dropped by 70% YoY to Rs 159 million
MTL – 3rd Quarter
EPS 2020 = 9.11 PKR
EPS 2019 = 16.85 PKR
Nine Months Ended
EPS 2020 = 24.13 PKR
EPS 2019 = 53.40 PKR
Cash Dividend = NIL
Bonus Share = NIL