Bolan Casting Limited (BCL) reported loss per share of PKR 1.67 for FY25, compared to earnings per share of PKR 10.34 in FY24. Furthermore, in 1QFY26, the company reported earnings per share of PKR 0.95, compared to loss per share of PKR 3.37 in the same period last year (SPLY). The tractor industry declined sharply by 36.4%, driven by liquidity constraints, delayed tax refunds, and weak farm economics. BCL’s production fell by 51% to 3,534 tons, down from 7,228 tons in the previous year, marking the lowest production level in the company’s history.
Sales also declined by 46% to 3,716 tons, compared to 6,852 tons. Management expects the Punjab Government’s upcoming Green Tractors Subsidy Scheme to revive demand in the tractor industry and its allied segments. They are hopeful that effective implementation of the scheme will provide a meaningful boost to sector wide demand.
Management further highlighted that Phase 2 of the Green Tractor Scheme includes 10,500 tractors of smaller HP models, which require a higher number of components supplied by the company. This is expected to support higher capacity utilization going forward. Suzuki has refused local manufacturing of its engine blocks due to quality concerns.
Similarly, Honda engine manufacturing is not feasible due to lightweight engine specifications. As a result, the company is focusing on the replacement market as a key business driver. Regarding Ghandhara Industries, management noted that the company is entering into agreements with Chinese partners for CKD variants. While BCL can supply brake drums and hubs, the Chinese partners have expressed reluctance, stating they will not guarantee product quality if these components are sourced locally.
Important Disclosures
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