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. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
