October 27, 2025 (MLN): Al-Ghazi Tractors Limited (PSX: AGTL) posted a loss after tax of Rs269.8 million for the nine months ended September 30, 2025, compared to a profit of Rs2.37 billion in the corresponding period last year, reflecting a significant downturn in performance.

Earnings per share (EPS) stood at negative Rs4.65, against Rs40.87 in 9MFY24.

Net sales dropped 59% year-on-year to Rs9.76bn from Rs23.84bn, mainly due to subdued market demand and challenging macroeconomic conditions. The cost of sales declined 55.7% to Rs8.03bn from Rs18.13bn in the same period last year.

As a result, gross profit fell 69.7% to Rs1.73bn from Rs5.7bn, while the gross margin narrowed to 17.7% from 23.9% in 9MFY24.

Distribution expenses rose slightly by 2.3% to Rs390.8m, whereas administrative expenses increased 19.6% to Rs1.39bn, showing inflationary cost pressures. The company also booked an expected credit loss charge of Rs129.9m during the period.

Operating performance turned negative, with an operating loss of Rs182 million versus an operating profit of Rs4.16 billion last year. Other income declined 57.7% to Rs114.7 million from Rs271.4 million, while other expenses fell 64.9% to Rs90.5 million from Rs257.4 million.

Finance costs decreased 7% to Rs247.6m from Rs266.2m, offering limited relief to the bottom line.

The company reported a loss before tax of Rs405.4m compared to a profit before tax of Rs3.9bn in 9MFY24. After accounting for taxation of Rs135.6m, AGTL concluded the period with a net loss of Rs269.8m.

The decline in earnings was primarily driven by a sharp contraction in sales, lower gross profitability, and higher administrative costs, reflecting persistent headwinds in the tractor industry and overall slowdown in rural demand.