AGTL earnings preview 2QCY25: slower sales hit profit, but recovery seen QoQ

Al-Ghazi Tractors Ltd. (AGTL), one of Pakistan’s key tractor makers, is expected to post a sharp drop in earnings for the second quarter of 2025. But the good news? Sales have improved compared to the previous quarter, a possible sign of recovery ahead.

What’s expected?

• Profit after tax (PAT) is expected at Rs178 million, which means earnings per share (EPS) of Rs3.1
• This is down 80% year-on-year (YoY) compared to Rs15.2 EPS in the same period last year
• Revenue (sales) is expected at Rs4.5 billion, which is 43% lower YoY
• Sales volume (number of tractors sold) dropped by around 40% YoY

What’s improving?

• On a quarter-on-quarter (QoQ) basis (compared to Jan–Mar 2025), things look better:
  • Revenue is up 25%
  • Volumes (tractors sold) are up 34%
  • Gross margins are improving slightly, expected at 21.8%, up 0.3 percentage points QoQ

Cost pressures

• Selling and distribution expenses have surged nearly 10 times YoY as marketing and logistics picked up
• Admin costs are also up, rising 34% YoY and 11% QoQ

Bottom line:

AGTL’s profits are under pressure compared to last year due to lower tractor sales and higher expenses. But there’s a silver lining, demand picked up this quarter, and if the trend continues, AGTL could be on track for a better second half of the year.

The company’s performance will likely depend on government support for agriculture, farmer purchasing power, and the rollout of tractor subsidy programs like Punjab’s Green Tractor Scheme.

Source: Insight Securities (Private) Limited

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →

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