Lahore: Al-Ghazi Tractors Limited has reported a significant downturn in its financial performance for the three-month period ending March 31, 2025. According to its interim financial report, the company experienced a 62.52% decline in tractor sales, with 1,422 units sold compared to 3,794 units in the corresponding period of the previous year. The decline has been attributed to macroeconomic uncertainties, a challenging taxation environment, and continued pressure on farmer economics.
The company's core customer base has been negatively impacted by the discontinuation of the Punjab Government’s wheat procurement program, exacerbating rural liquidity issues and reducing purchasing capacity. Furthermore, the limited availability of affordable tractor financing has hindered farmers’ ability to invest in mechanization. The implementation of Punjab Government's Green Tractor Scheme has also disrupted seasonal buying patterns, contributing to the subdued demand.
Financially, Al-Ghazi Tractors Limited recorded a sales revenue of Rs. 3.64 billion, a decrease of 61.71% from the Rs. 9.50 billion recorded in the same period last year. The cost of sales decreased by 61.34% to Rs. 2.86 billion from Rs. 7.39 billion in the previous year. Gross profit fell by 63.01% to Rs. 0.78 billion, compared to Rs. 2.11 billion in the previous corresponding period. Operating profit dropped by 89.26% to Rs. 0.15 billion from Rs. 1.44 billion the prior year.
Distribution expenses for the period amounted to Rs. 0.13 billion, a 26.11% decrease from the previous year, while administrative expenses saw a slight increase of 3.69%, totaling Rs. 0.41 billion. The post-tax profit for the quarter was Rs. 0.06 billion, a sharp decline of 93.13% compared to Rs. 0.85 billion for the same period in 2024. Earnings per share (EPS) decreased significantly to Rs. 1.01 from Rs. 14.72 last year.
According to information available from the Pakistan Stock Exchange (PSX), the company has been navigating a challenging market environment, with total industry volume expected to contract in 2025. Nonetheless, recent policy developments, including the Punjab Government's Rs. 15 billion relief package under the Kisan Card, offer cautious optimism for potential improvements in farmer liquidity and sector support.
Looking ahead, Al-Ghazi Tractors Limited secured a tender for supplying 1,000 tractors under the Government of Punjab’s Wheat Tractor Scheme, reinforcing confidence in its product portfolio. The company remains committed to prudent operational management and long-term strategic resilience, with an emphasis on disciplined execution and operational agility in the face of ongoing economic challenges.