October 27, 2025 (MLN): Millat Tractors Limited (PSX: MTL) reported a profit after tax of Rs613.5 million for the quarter ended September 30, 2025, marking a 33.4% increase from Rs459.8m in the corresponding period last year.

Earnings per share (EPS) rose 33.5% to Rs3.07, compared to Rs2.30 in the same quarter of 2024.

The company's revenue from contracts with customers declined 11.5% year-on-year to Rs7.78 billion, down from Rs8.79bn, showing softer demand conditions during the quarter.

Meanwhile, cost of sales decreased 12.6% to Rs5.59bn, leading to a gross profit of Rs2.19bn, down 8.3% from Rs2.39bn last year. However, gross margin improved to 28.2%, compared to 27.2% in the same period of 2024.

Distribution and marketing expenses declined 6.7% to Rs364.0m, while administrative expenses rose modestly by 2.1% to Rs481.1m. Other operating expenses decreased slightly by 1.9% to Rs74.2m, whereas other income fell 22.5% to Rs84.3m.

Despite lower revenue, operating profit declined 13.2% to Rs1.36bn, compared to Rs1.56bn in the prior-year quarter, impacted by reduced top-line performance and lower other income.

Finance costs dropped significantly by 25.7% to Rs476.8m from Rs641.8m last year, providing substantial relief to the bottom line. Consequently, profit before taxes declined 4.4% to Rs880.0m from Rs920.5m.

The company incurred an income tax expense of Rs266.6m, down 42.1% from Rs460.1m in the prior year, which included a levy of Rs0.6m.

This brought the net profit margin to 7.9%, compared to 5.2% in the corresponding quarter of 2024.

The quarterly performance highlights Millat Tractors' resilience with improved profitability despite revenue headwinds, driven by enhanced gross margins, reduced finance costs, and a significantly lower tax burden.