Millat Tractors expecting a good year with government contracts
Sales rising by 47% this past year, exports surging more than 66%, and new Punjab government contracts in the works
Millat Tractors (MTL), Pakistan's leading tractor manufacturer, is ploughing through challenges with a bumper allocation of 5,800 units (61% of total) under Punjab’s Green Tractor Scheme. Deliveries are set to kick off this quarter, easing inventory woes and providing a cash flow boost.
After weathering a sales slump caused by tax refund delays and liquidity crunches among farmers, MTL’s fortunes are turning. Tractor sales soared 47% year-on-year in FY24, with the company’s own sales leaping 64% to 30,620 units. Exports surged 66%, driven by demand for its Massey Ferguson tractors and power equipment.
MTL’s Rs8 billion in sales tax refund claims remains a thorn in its side, but management is optimistic about its merger with Millat Equipment Limited and resuming dividends soon. With its expanded spare parts network and deluxe tractor variants, MTL seems ready to harvest further growth.
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