Millat Tractors Limited (MTL) announced the financial results for the first quarter of FY23. The company’s entire comprehensive income for the year as of the beginning of the year was Rs430 million, a decrease of 67% year over year (YoY).
From Rs9.9 billion in Q1FY22 to Rs6.8 billion in Q1FY23, Millat’s total sales revenue decreased YoY by 31.2%. The decrease in sales income was probably caused by the 55.6% decline in sales that the company saw over the same time period, going from 7,197 units to 3,194 units.
Additionally, the business’s gross profit margin (GPM) decreased from 20.8 to 17.2 percent. This is most likely due to the growth in the cost of goods sold, which increased from 80% of sales revenue to 83.0% of sales within the same time period.
Another significant YoY shift is a 92% decrease in other revenue, from Rs248 million to Rs19.4 million. The decline is probably due to Millat having less money available for investment because it is a part of the group that will be helping to rescue Hyundai Nishat.
However, Hassan Mansha, CEO of Hyundai Nishat, had told Profit that “The amounts (by other shareholders) would depend on their shareholding ratio.” Millat has not stated the amount it will be contributing to the rescue. 18% of Hyundai Nishat is owned by Millat.
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