Al-Ghazi Tractors Limited’s (AGTL) Profits Take a Hit in 2QCY25: Here’s Why?

Al-Ghazi Tractors Limited (AGTL), one of Pakistan’s biggest tractor manufacturers, announced its financial results for the second quarter of 2025 (2QCY25). The numbers show that the company’s profits have dropped compared to last year, and here’s what’s going on.

Key numbers at a glance

• Profit after tax (PAT): PKR 1.2 billion, down 21% year-on-year (YoY)
• Earnings per share (EPS): PKR 20.77 vs. PKR 26.19 in the same quarter last year
• Revenue: Fell by 8% YoY to PKR 12.3 billion
• Gross margins: Declined to 21.2% from 24.4% last year

What caused the drop?

1. Lower Sales Volumes: Tractor sales slowed down, which pushed overall revenue lower.
2. Shrinking Margins: Rising costs and tougher pricing conditions reduced profitability.
3. Finance Costs: Borrowings and higher interest payments added more pressure on earnings.
4. Other Income: AGTL earned less from “other income” sources compared to last year.

Bright spots

• Despite challenges, AGTL managed to stay profitable.
• The company is still one of the dominant players in the tractor industry, and any recovery in the agriculture sector will directly benefit it.

Why does it matter?

Tractors are the backbone of Pakistan’s agriculture. When farmers buy more tractors, it usually means confidence is returning to rural demand and the broader economy. A slowdown, on the other hand, shows stress in the agri-sector.

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The road ahead

Looking forward, AGTL’s growth will depend on:

• Government support for farmers (subsidies, loans, etc.)
• Stability in input costs
• Revival of rural demand as interest rates ease

AGTL’s profits have dropped this quarter due to weaker sales and tighter margins, but if farming activity picks up, the company could bounce back.

Source: Insight Securities

⚠️ 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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