Al Ghazi Tractors Limited (AGTL) has stated that their earnings in the third quarter are Rs. 693 million. According to the notice sent to Pakistan Stock Exchange (PSX), the income has increased by 150% if compared to last year.
The report further stated that earnings per share (EPS) amplified to Rs. 11.97 from EPS of Rs. 4.81.
Furthermore, sales have skyrocketed to Rs. 4.4 billion as compared to Rs. 1.82 billion in the same period last year, increase of 144%. Moreover, it was informed that the administrative expenses stayed regular.
The increase in earnings of AGTL can be mainly contributed to 134% increase in sales of Tractor. In the third quarter of 2017 tractor sales went down by 3% to 5,672 units while margins stood at 26%. The margins for second quarter year of 2017 reached 28%.
Al Ghazi Tractors Limited decided the interim dividend for the third quarter at Rs. 25 per share.
Furthermore, in total, the company’s earnings increased by 81% to Rs. 2.28 million in first nine months this year from Rs. 1.1 billion if compared to last year.
The tractor industry has received great boost in recent years. The main reason for the growth is China-Pakistan Economic Corridor (CPEC) and construction of farm-to-market roads. Many farm tractors are also being operated for the under-construction CPEC projects, thus an increase in sales of tractors.