Millat Tractors Limited (PSX: MTL) has posted one of its most difficult years in recent memory. For the financial year ended 30 June 2025, unconsolidated net sales fell to Rs52.1 billion, down 43.0% from Rs91.5 billion the previous year, as demand for farm machinery softened across the country. Profit after tax slid 38.0% to Rs6.37 billion, with earnings per share at Rs31.9. The company did keep a tight hold on costs and pricing – its gross margin rose to 26.6% from 23.4% – but that improvement could not offset the shock to volumes and revenues. These figures are taken from the company’s statutory filing to the Pakistan Stock Exchange, where the statement of profit or loss sets out the declines in revenue and profit clearly.
Brokerage analysis helps explain the mechanics of the downturn. According to Arif Habib Ltd (AHL), Millat sold 18,580 tractors in FY25, down 38.0% from 30,203 in FY24. In a note issued to clients, Arif Habib Ltd’s analysts highlighted an industry‑wide trough in orders, even as the company eked out a stronger gross margin on the back of pricing, mix and procurement discipline. 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
