Millat Tractors Limited, Pakistan’s largest tractor manufacturer, has suspended operations until further notice.
The indefinite shutdown was caused by “continuing reduced demand for tractors and cash flow constraints,” according to the company.
Millat Tractors, along with Atlas Honda, is one of Pakistan’s most prolific automakers, with the highest localization rate (the bike company).
The company’s most recent non-production day (NPD) announcement was made last month for the same reasons.
The company’s stock was trading at Rs. 553.01 at the time of filing, down Rs. 17.63 or 3.09 percent.
Kohinoor Spinning Mills Limited decided to halt production last month due to the ongoing economic downturn, while Attock Refinery Limited temporarily closed its main distillation unit.
Similarly, several other automakers are experiencing NPDs as a result of inventory shortages and a critical demand slump.
The government promised Pakistanis a better year in terms of economic development, but recent developments in the industrial sector suggest otherwise.
Millat Tractors Limited (MTL) has released its financial results for the first quarter of fiscal year 23.
The company’s total comprehensive income for the year as of the start of the year was Rs430 million, a 67% decrease year on year (YoY).
Millat’s total sales revenue fell 31.2% year on year, from Rs9.9 billion in Q1FY22 to Rs6.8 billion in Q1FY23.
The drop in sales income was most likely caused by the company’s 55.6% drop in sales over the same time period, from 7,197 to 3,194 units.
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