Karachi: Al-Ghazi Tractors Ltd. (AGTL) disclosed its financial results for the calendar year 2023 and the first quarter of 2024, reporting significant earnings growth and outlining strategic plans for expanding its product line and tapping into export markets.

According to AKD Securities Limited, AGTL achieved earnings of PKR 2.6 billion in CY23, up from PKR 2.2 billion in CY22, with an earnings per share increase from PKR 37.2 to PKR 45.1. This growth was primarily due to improved gross margins and a substantial rise in other income, which tripled year-over-year due to increased short-term investments. However, the company faced challenges in early 2023, including currency devaluation and trade restrictions that disrupted the supply chain.

In the first quarter of 2024, AGTL posted a revenue of PKR 9.5 billion, more than doubling the previous year's figure of PKR 4.2 billion, driven by higher sales volumes and increased tractor prices amid enhanced agricultural activity. The company also improved its gross margin to 22% in 1QCY24 from 15% in the same period last year, benefiting from currency stability.

Despite these gains, AGTL experienced a decline in market share during the first half of 2024, primarily due to a shift in market preference towards higher horsepower tractors, which are not fully covered by AGTL's current offerings. In response, the company plans to launch an 85hp tractor line later this year and is developing products with even greater horsepower to better meet the demands of corporate farming.

Additionally, AGTL aims to increase its market presence through the Green Tractor scheme initiated by the Punjab Government and has proposed a PKR 10 billion investment to upgrade plant equipment and enhance product quality. The company is also looking to explore export opportunities, a market segment it had previously neglected.