⚡ Flash Summary

Millat Tractors Limited (MTL) reported a decrease in revenue for the quarter ended September 30, 2025, with consolidated revenue dropping to PKR 7.78 billion from PKR 8.79 billion in the same period last year. This decrease in revenue led to a decline in gross profit, which fell from PKR 2.39 billion to PKR 2.19 billion. Consequently, the profit after tax decreased from PKR 459.8 million to PKR 613.5 million. Earnings per share (EPS) also declined from PKR 2.30 to PKR 3.07.

📌 Key Takeaways

• 📉 Revenue decreased by 11.46% from PKR 8.79 billion in 2024 to PKR 7.78 billion in 2025.
• 📉 Gross profit declined by 8.39% from PKR 2.39 billion to PKR 2.19 billion.
• 📉 Profit after tax decreased by 25.37% from PKR 459.8 million to PKR 613.5 million.
• 📉 Earnings per share (EPS) decreased from PKR 2.30 to PKR 3.07.
• ⚠️ Finance costs decreased from PKR 641.8 million to PKR 476.8 million, positively impacting profitability.
• 🏢 Administrative expenses increased slightly from PKR 471.18 million to PKR 481.12 million.
• 💼 Other income decreased from PKR 108.7 million to PKR 84.3 million.
• 📊 Total comprehensive income decreased from PKR 421.0 million to PKR 606.5 million.
• 💰 Cash and cash equivalents decreased from PKR (11.09) billion to PKR (15.74) billion.
• 🚜 Property, plant, and equipment increased from PKR 2.09 billion to PKR 2.10 billion.
• 🧾 Trade and other payables increased significantly from PKR 6.54 billion to PKR 8.19 billion.
• 🏦 Short-term borrowings increased from PKR 14.12 billion to PKR 17.34 billion, indicating increased reliance on debt.
• ⚠️ Slight exchange differences on translation of foreign operations (loss) impacted total comprehensive income.

🎯 Investment Thesis

Based on the decreased revenue, declining profitability, and increased borrowings, a SELL recommendation is warranted for Millat Tractors (MTL). The company’s financial performance indicates potential challenges in maintaining its market position and generating profits. Price Target: PKR 250.00. Time Horizon: Medium Term (6-12 months). The price target is set based on a conservative estimate, considering the current financial challenges and potential market corrections.