Millat Tractors Limited (PSX: MTL) has reported a profit after tax of Rs. 613.5 million for the quarter ended September 30, 2025, reflecting a 33.4 percent increase from Rs. 459.8 million in the same period last year.
Earnings per share (EPS) jumped 33.5 percent to Rs. 3.07, compared to Rs. 2.30 in 1QFY25.
The company’s revenue from contracts with customers fell 11.5 percent year-on-year to Rs. 7.78 billion, down from Rs. 8.79 billion, indicating softer demand during the quarter.
Cost of sales decreased 12.6 percent to Rs. 5.59 billion, resulting in a gross profit of Rs. 2.19 billion, down 8.3 percent from Rs. 2.39 billion in the same quarter last year. Nevertheless, gross margin improved to 28.2 percent from 27.2 percent.
Distribution and marketing expenses declined 6.7 percent to Rs. 364.0 million, while administrative expenses edged up 2.1 percent to Rs. 481.1 million. Other operating expenses fell slightly by 1.9 percent to Rs. 74.2 million, whereas other income dropped 22.5 percent to Rs. 84.3 million.
Operating profit decreased 13.2 percent to Rs. 1.36 billion, compared to Rs. 1.56 billion in 1QFY25, reflecting weaker revenue and lower other income.
Finance costs eased significantly by 25.7 percent to Rs. 476.8 million from Rs. 641.8 million last year, providing substantial support to the bottom line. As a result, profit before tax declined 4.4 percent to Rs. 880.0 million from Rs. 920.5 million.
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Income tax expense dropped 42.1 percent to Rs. 266.6 million from Rs. 460.1 million in the prior year, which included a levy of Rs. 0.6 million.
The company’s net profit margin rose to 7.9 percent, up from 5.2 percent in the same quarter of 2024.
