Daily Times

Al-Ghazi Tractors Limited reported a profit after tax of Rs3.54 billion for the fiscal year 2024, marking a 35.63% year-on-year (YoY) increase from Rs2.61 billion in the previous year. The company’s earnings per share (EPS) also rose significantly to Rs61.11, up from Rs45.06 in FY23, indicating strong profitability.

Revenue remained steady at Rs34.57 billion, showing a marginal 0.09% YoY increase. However, the company’s gross profit saw a significant improvement, rising by 31.32% to Rs8.43 billion. This growth was primarily driven by a 7.04% decrease in the cost of sales, which dropped to Rs26.14 billion. Lower production costs allowed for improved margins despite flat revenue.

In terms of expenses, distribution costs surged by 87.61% to Rs804.79 million, while administrative expenses increased by 35.68% to Rs1.47 billion. The company experienced a 43.65% drop in other income, which amounted to Rs315.63 million, but managed to reduce other expenses by 24.73% to Rs323.53 million. Finance costs also rose by 25.36% to Rs446.77 million, adding pressure on the bottom line.

Despite these rising expenses and an 86.90% increase in the levy-final tax, Al-Ghazi Tractors saw a 21.78% increase in profit before tax, reaching Rs5.71 billion. Income tax expenses grew by 4.34% to Rs2.16 billion, but the company still achieved an overall net profit growth of 35.63%, driven by cost-saving strategies and efficient operations.