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Lahore: Millat Tractors Ltd. (MTL), a prominent player in the agricultural machinery sector, reported a significant decline in its financial performance for the fiscal year 2025. The company announced a 43% decrease in revenue, attributing this downturn to challenging farm economics and recent natural disasters.
The company’s topline for FY25 fell to PkR52.1 billion, down from PkR91.5 billion in FY24. This decline was primarily influenced by the removal of wheat support prices and the aftermath of recent floods, which adversely affected the agricultural sector.
Industry-wide sales also fell by 36% year-over-year, with total sales dropping from 45,494 units in FY24 to 29,192 units in FY25. MTL’s sales mirrored this trend, declining by 39% to 18,580 units, though the company maintained a commanding 64% market share.
MTL’s export revenue for the year stood at PkR5.2 billion, but export volumes experienced a 6% year-over-year decrease. Afghanistan and Africa were noted as the primary export destinations during this period.
Despite these challenges, the company is adapting its strategy in response to geopolitical developments. Recent border tensions with Afghanistan are expected to impact export volumes negatively. In response, MTL has initiated exports to Mexico, which is anticipated to mitigate some of the declines associated with Afghan exports.
The information was disclosed during a corporate briefing by Millat Tractors Ltd., as reported by AKD Securities Limited.