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Karachi: The Directors of Baluchistan Wheels Limited have released their Un-Audited Condensed Interim Financial Statements for the first quarter ending September 30, 2024, revealing a slight decline in overall consolidated revenue and notable shifts in sales across product categories.
During the period from July to September 2024, Baluchistan Wheels reported consolidated revenue of Rs 503 million, a marginal decrease of 1% from Rs 509 million in the same quarter last year. Notably, the company experienced a significant increase in sales of car wheels, rising to Rs 241 million from Rs 162 million, marking a growth of 49%. Truck and bus wheel sales also saw substantial growth, increasing from Rs 42 million to Rs 136 million, reflecting an increase of 224%. In contrast, sales of tractor wheels fell sharply from Rs 295 million to Rs 104 million, a decrease of 65%.
The company’s gross profit reached Rs 114 million, a significant improvement of 159% compared to Rs 44 million in the previous year. Baluchistan Wheels reported a net profit after tax of Rs 81 million, an increase of 189% from Rs 28 million in the corresponding period last year. This increase in gross profit is attributed to a surge in the production and sales of car and truck/bus wheels, driven by several factors, including stable exchange rates, reduced interest rates, lower inflation, and rising consumer demand.
However, the drop in tractor wheel sales is linked to the decline in tractor sales, primarily due to a production halt by a leading tractor assembler and ongoing issues related to the government’s sales tax refunds for tractor manufacturers. Additionally, a rise in other income contributed to the net profit, stemming from investments in government treasury bills and the reversal of liabilities no longer payable.
According to information available from the Pakistan Stock Exchange (PSX), the company has not reported any significant changes in contingencies and commitments as disclosed in the financial statements for the year ended June 30, 2024.
Looking ahead, Baluchistan Wheels anticipates a modest increase in auto sales for the financial year 2024-25, supported by a revival of domestic demand amid decreasing interest rates. The company also expects the Green Tractor Programme 2024 initiated by the Punjab Government to positively influence tractor sales volume. However, elevated auto prices in relation to consumer disposable income may affect overall industry trends and sales volume.
Baluchistan Wheels acknowledges the trust and confidence of its customers and stakeholders, emphasizing the efforts of its staff and workers in navigating the current market landscape.
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