External broker reports(aggregated public sources), Topline Securities

Topline Securities

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External broker reports(aggregated public sources)

Equity Bottom-Up

<ul><li>Millat Tractors Limited (MTL) announced its 1QFY25 result today, where the company recorded profit of Rs570mn (EPS of Rs2.97), down 75% YoY and 72% QoQ. The result came slightly lower than in expectations.</li><li>Net sales fell by 62% YoY and 64% QoQ to Rs 7.8bn in 1QFY25, aligning with expectations and driven by a sharp drop in units sold as company was facing operational difficulties due to SRO 563(1)/2022 and imposition of 10% sales tax in Budget FY25, which was piling up sales tax refunds. Only 2,566 units were sold in 1QFY25, down 64% QoQ and YoY.</li><li>As of October 23, the GST on tractors has increased to 14% to minimize the sales tax refunds pileup. Despite this hike, we anticipate a recovery in sales, driven by the Punjab government's Green Tractor Scheme and the rescission of SRO 563(1)/2022, which now permits sales to a broader customer base. For more information, please refer to our report, Millat Tractors Limited (MTL) - Sales Volumes to Normalize After Cancellation of SRO, dated October 24, 2024.</li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Millat Tractors Limited (MTL) announced its 1QFY25 result today, where the company recorded profit of Rs570mn (EPS of Rs2.97), down 75% YoY and 72% QoQ. The result came slightly lower than in expectations.Net sales fell by 62% YoY and 64% QoQ to Rs 7.8bn in 1QFY25, aligning with expectations and driven by a sharp drop in units sold as company was facing operational difficulties due to SRO 563(1)/2022 and imposition of 10% sales tax in Budget FY25, which was piling up sales tax refunds. Only 2,566 units were sold in 1QFY25, down 64% QoQ and YoY.As of October 23, the GST on tractors has increased to 14% to minimize the sales tax refunds pileup. Despite this hike, we anticipate a recovery in sales, driven by the Punjab government's Green Tractor Scheme and the rescission of SRO 563(1)/2022, which now permits sales to a broader customer base. For more information, please refer to our report, Millat Tractors Limited (MTL) - Sales Volumes to Normalize After Cancellation of SRO, dated October 24, 2024.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Millat Tractors (MTL): Despite All Time High Gross Margins, Earnings Fell by 72% YoY