Karachi: Al-Ghazi Tractors Ltd (AGTL) announced a notable increase in profitability and sales during their Analyst Briefing, which discussed the CY23 and 1QCY24 financial results and future company prospects. The firm reported a 21% rise in CY23 earnings per share (EPS) and a 3.7 times increase in 1QCY24 EPS. Moreover, AGTL's net sales soared by 128% year-over-year in the first quarter of 2024, reaching Rs9.5 billion, up from Rs4.2 billion in the same period last year.

According to JS Global, the significant recovery in AGTL’s sales can be attributed to improved agricultural economics compared to the previous year, which was heavily impacted by the 2022 floods, supply chain issues, and the depreciation of the Pakistani Rupee. Additionally, the tractor industry has faced challenges due to long-standing delays in sales tax refunds, accumulating to Rs4.2 billion over four years, which has strained the entire value chain and working capital.

AGTL’s market share has seen a decline, dropping from 51% in 2008 to 32% currently. This loss is primarily due to the company's failure to innovate in the higher Horse Power (HP) tractor segments, specifically the 85HP category, which now represents about 40% of the market. In contrast, its competitor Millat Tractors Ltd (MTL) has excelled in exports, generating Rs3 billion in export revenue compared to AGTL’s Rs119 million in CY23.