⚡ Flash Summary

Millat Tractors Limited (MTL) reported a decrease in revenue for the quarter ended September 30, 2025, with consolidated revenue from contracts with customers decreasing to PKR 7,784.33 million compared to PKR 8,792.17 million in the same quarter last year. Profit after tax also declined from PKR 459.81 million to PKR 613.46 million. Basic and diluted earnings per share (EPS) decreased from PKR 2.30 to PKR 3.07. The company’s performance was impacted by increased finance costs which could be the result of higher interest rates.

📌 Key Takeaways

• 📉 Revenue from contracts with customers decreased by 11.46% YoY to PKR 7,784.33 million from PKR 8,792.17 million.
• 💰 Gross profit decreased to PKR 2,191.92 million compared to PKR 2,390.69 million in the same quarter last year.
• ⚠️ Distribution and marketing expenses decreased to PKR 363.97 million from PKR 390.26 million.
• 🏢 Administrative expenses increased to PKR 481.12 million compared to PKR 471.18 million YoY.
• 📉 Other operating expenses decreased to PKR 74.20 million from PKR 75.65 million YoY.
• 📈 Other income decreased to PKR 84.26 million from PKR 108.72 million YoY.
• 💸 Finance costs increased from PKR 476.85 million to PKR 641.81 million.
• ⚠️ Profit before income taxes and levies decreased to PKR 880.04 million from PKR 920.51 million.
• 📉 Profit after tax decreased to PKR 613.46 million compared to PKR 459.81 million.
• 💲 Basic and diluted earnings per share increased to PKR 3.07 compared to PKR 2.30 in the same quarter last year.
• 📉 Total comprehensive income for the period decreased to PKR 606.50 million from PKR 421.00 million.
• ⚠️ Non-current assets increased to PKR 8,068.28 million compared to PKR 8,231.63 million in June 30, 2025.
• ⚠️ Current assets increased to PKR 30,636.54 million compared to PKR 26,649.65 million in June 30, 2025.
• ⚠️ Current liabilities increased to PKR 27,328.51 million compared to PKR 23,982.54 million in June 30, 2025.

🎯 Investment Thesis

Based on the decreased revenue, increased finance costs, and decreased profit after tax, a HOLD recommendation is appropriate. While the company maintains a strong market position, current financial indicators suggest caution. A price target and time horizon cannot be reliably determined without further analysis and market data.