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Millat Tractors Limited (PSX: MTL) has announced its financial results for the year ending June 30, 2025, posting a sharp 40.55% drop in profit after tax to Rs6.32 billion compared to Rs10.64 billion last year. The fall comes amid a steep decline in revenue and rising finance costs.
Millat Tractors, a key player in Pakistan’s agricultural machinery sector, has been under pressure from weakening demand, high input costs, and economic challenges impacting the auto and tractor industry. In FY25, the company’s revenue plunged by nearly 44% to Rs53.35 billion from Rs95.02 billion in FY24, leading to a substantial contraction in gross and operating profits.
Despite cutting down on distribution and other expenses, the company’s operating profit fell 46.8% to Rs10.32 billion. Finance costs surged 60% to Rs2.21 billion, further squeezing earnings. Consequently, earnings per share (EPS) declined to Rs31.70 from Rs54.37 a year earlier.
The latest results highlight the strain faced by Pakistan’s tractor industry, where slowing agricultural demand and rising borrowing costs have hit sales. Market watchers believe that a recovery will depend on better economic stability, easing inflation, and improved rural income.
Financial Snapshot (FY25 vs FY24)
| Description | FY25 (Rs bn) | FY24 (Rs bn) | Change % |
| Revenue | 53.35 | 95.02 | -43.9% |
| Gross Profit | 14.41 | 23.97 | -39.9% |
| Operating Profit | 10.32 | 19.38 | -46.8% |
| Finance Cost | 2.21 | 1.38 | +60.0% |
| Profit After Tax | 6.32 | 10.64 | -40.6% |
| EPS (Rupees) | 31.70 | 54.37 | -41.7% |
