AGTL recorded earnings per share of PKR 22.44 in CY25, as compared to PKR 61.11 in CY24. The company recorded net sales of PKR 20.4 Bn, down 41% from PKR 34.6 Bn in CY24. During CY25, the company’s gross margin sustained at 25%, similar to 24% in CY24. Along with this, it saw its gross profit decline 39% from PKR 8.4 Bn in CY24 to PKR 5.2 Bn in CY25. AGTL posted profit after tax of PKR 1.3 Bn in CY25, compared to PKR 3.5 Bn in CY24.
During 1QCY26, the company reported earnings per share of PKR 11.69, compared to PKR 1.01 in SPLY. This improvement was driven by growth in sales along with expansion in gross margins to 27% during the quarter compared to 21% in SPLY. This improvement in margins is driven by both transformation efficiencies as well as a shift in sales mix to higher HP tractors. The company is working on a significant modernization programme which is expected to take 3-4 years to complete.
This programme is expected to enhance the quality of products, modernization of the plant with both civil work and new plant and equipment as well as a vendor improvement programme. The company’s sales mix currently consists of 25% high HP tractors (75hp & 85hp) with the remainder accounted for by smaller tractors. Moving forward, the management expects this mix to shift to 40% higher HP tractors driven by a change in consumer preferences amidst govt efforts to enhance mechanization of farms. With regards to farm economics, it was apprised that a better year is expected with wheat prices about 50% higher than last year leading to better cashflows for farmers. The company was allocated 4,568 units in the government tractor scheme phase 3, As of March 31st, about 1,500 have been delivered with the remainder expected in 2QCY26.
Management apprised that exports to Afghanistan have been affected as a result of the border closure. As a result, the company has been making efforts to diversify its export markets with the hiring of a sales manager with over 10 years of experience dedicated for this purpose.
Moving forward, the company expects continued attention to mechanization from the government with efforts to also improve the penetration of farm implements such as the super seeder introduced in Punjab, this is expected to drive a shift to higher HP tractors across the country.
Important Disclosures
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