Karachi, February 22, 2019: Millat Tractor’s profit after tax declined by 34 percent to Rs 1.825 billion in first half of this fiscal year compared to Rs 2.778 billion in same period of last fiscal year.
According to financial report of the Company for the six months ended December 31, 2018, initial six months of this fiscal year, especially the last quarter were challenging for the company due to significant decline in sales.
Despite making record sales in first quarter of fiscal year 2019, overall sales declined as compared to previous period. Resultantly, total units sold were 16,111as compared to 20,155 units sold in previous period. Profit after tax stands at Rs 1,825 million versus Rs. 2,778 million in previous period, showing a decline of Rs 920 million.
The report said that continuing devaluation of Pakistani rupee against foreign currencies and dwindling investor confidence has hampered economic growth of Pakistan significantly.
Gains made by economy in previous years are under threat on account of increased pressure on current account deficit, rising import bills and widening trade deficit. However, oil prices seem to have stabilized around 60 USD per barrel in international market.
GDP growth for the fiscal year 2019 is being estimated at 4 percent by IMF. Reputable credit rating agencies have downgraded Pakistan to lower end of highly speculative grade.
Sikandar Mustafa Khan Chairman board has said that on the agricultural side, delayed crushing of sugarcane crop and water shortages at the time of sowing of Kharif crop indicate that overall performance may decline as compared to previous comparable period. Year over year growth for agricultural sector is expected to fall below 3.8 percent.
He said that drop in the domestic market makes it critical for company to explore global markets. Devaluation of the Rupee makes our product very attractively priced and company will make efforts through our understanding with M/s. AGCO-Massey Ferguson to increase exports.
“Despite all the hurdles being faced by economy and company, we will endeavor to deliver value by focusing on quality and strengthening our relationships with all of the stakeholders involved”, he added.
He believed that the economy will pick up its pace in near future and your company will bounce back to new heights by embracing innovation and focusing on engineering for life.
He also extend his deepest gratitude towards our vendor industry, employees and other stakeholders for being steadfast and standing resolute with us in this challenging time.