Bolan Castings Limited (BCL), a subsidiary of Millat Tractors Limited, has decided to extend its temporary production shutdown until June 13, 2025, as the tractor industry continues to face a severe downturn. The company cited a continued lack of customer orders as the primary reason for the prolonged suspension.
In a notice sent to the Pakistan Stock Exchange (PSX) on Friday, BCL said that “the conditions prompting the earlier suspension continue to prevail, given the lack of customer orders due to continued downturn in the tractor industry.” As a result, the company’s management has opted to keep the production lines idle for another three weeks.
This is the second extension to the production halt initially announced on April 26, when the company first decided to cease manufacturing activities from April 28 to May 9. That decision was extended on May 9 to cover the period up to May 23, and now once again till June 13, 2025.
Bolan Castings, incorporated in Pakistan in 1982, manufactures and sells castings for tractors and automotive components. It serves primarily as a supplier to the tractor industry, making it vulnerable to fluctuations in demand within the agricultural machinery sector.
The current operational pause comes amid a broader slowdown in the agriculture and allied machinery market, attributed to weak farm incomes, reduced credit availability, and broader macroeconomic pressures. The tractor industry in particular has struggled with rising costs and inconsistent subsidy policies at the provincial level, leading to subdued sales.
Financial results reflect this tough operating environment. In its third quarter ended March 31, 2025, BCL reported net sales of Rs622.19 million, significantly down from Rs953.70 million in the same quarter last year. Profit after tax also dropped to Rs15.31 million from Rs68.50 million a year earlier, reflecting both lower revenues and pressure on margins.
The management has said it is monitoring the market situation and will resume production once demand conditions improve.
