{"id":10633,"date":"2025-07-29T12:19:46","date_gmt":"2025-07-29T07:19:46","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=10633"},"modified":"2025-07-29T12:19:48","modified_gmt":"2025-07-29T07:19:48","slug":"agtl-earnings-preview-2qcy25-slower-sales-hit-profit-but-recovery-seen-qoq","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/agtl-earnings-preview-2qcy25-slower-sales-hit-profit-but-recovery-seen-qoq\/","title":{"rendered":"AGTL earnings preview 2QCY25: slower sales hit profit, but recovery seen QoQ"},"content":{"rendered":"\n

Al-Ghazi Tractors Ltd. (AGTL<\/a>)<\/strong>, one of Pakistan\u2019s 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.<\/p>\n\n\n\n

What\u2019s expected?<\/h2>\n\n\n\n
    \n
  • Profit after tax (PAT)<\/strong> is expected at Rs178 million<\/strong>, which means earnings per share (EPS)<\/strong> of Rs3.1<\/strong><\/li>\n\n\n\n
  • This is down 80% year-on-year (YoY)<\/strong> compared to Rs15.2 EPS in the same period last year<\/li>\n\n\n\n
  • Revenue (sales)<\/strong> is expected at Rs4.5 billion<\/strong>, which is 43% lower YoY<\/strong><\/li>\n\n\n\n
  • Sales volume (number of tractors sold) dropped by around 40% YoY<\/strong><\/li>\n<\/ul>\n\n\n\n

    What\u2019s improving?<\/h2>\n\n\n\n
      \n
    • On a quarter-on-quarter (QoQ) basis (compared to Jan\u2013Mar 2025), things look better:\n
        \n
      • Revenue is up 25%<\/strong><\/li>\n\n\n\n
      • Volumes (tractors sold) are up 34%<\/strong><\/li>\n\n\n\n
      • Gross margins are improving slightly, expected at 21.8%<\/strong>, up 0.3 percentage points QoQ<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n

        Cost pressures<\/h2>\n\n\n\n
          \n
        • Selling and distribution expenses<\/strong> have surged nearly 10 times<\/strong> YoY as marketing and logistics picked up<\/li>\n\n\n\n
        • Admin costs<\/strong> are also up, rising 34% YoY<\/strong> and 11% QoQ<\/strong><\/li>\n<\/ul>\n\n\n\n

          Bottom line:<\/h2>\n\n\n\n

          AGTL’s profits are under pressure compared to last year due to lower tractor sales and higher expenses. But there\u2019s 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.<\/p>\n\n\n\n

          The company\u2019s performance will likely depend on government support for agriculture, farmer purchasing power, and the rollout of tractor subsidy programs like Punjab\u2019s Green Tractor Scheme.<\/p>\n\n\n\n

          Source: Insight Securities (Private) Limited<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

          Al-Ghazi Tractors Ltd. (AGTL), one of Pakistan\u2019s 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.<\/p>\n","protected":false},"author":9252,"featured_media":6471,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[276],"class_list":["post-10633","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-agtl"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/AGTL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/AGTL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/AGTL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/AGTL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=10633"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10633\/revisions"}],"predecessor-version":[{"id":10635,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/10633\/revisions\/10635"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6471"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=10633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=10633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=10633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}