MILLAT TRACTORS LIMITED
Oct 27 - Nov 02, 2008
The company is a public limited company incorporated in Pakistan under the Companies Ordinance, 1984 and is listed on the Karachi, Islamabad and Lahore Stock Exchanges. The registered office of the Company is situated at Sheikhupura Road, District Sheikhupura. It is principally engaged in assembly and manufacture of agriculture tractors, implements and equipments.
Millat has always endeavored to offer international quality equipment to enable Pakistani farmers to march towards a brighter and prosperous future along with the developed world.
Trust is a relationship of reliance. At Millat there exists a Triangle of Trust amongst the following three partners since 1964:
* AGCO/Massey Ferguson - the creators of technology
* Millat Tractors Limited - the shapers/ deliverers of technology
* Farmers - the end users of technology
This triangle, which works as the blood line of a "Green Revolution" in Pakistan, is vital for the country to mechanise agriculture which earns livelihood for more than 70% of the country's population, besides meeting the basic food requirements of the people and earning substantial foreign exchange through export of surplus.
The company achieved all time best performance in sales and production recording 27,260 units and 27,506 units against last year figures of 27,127 units and 27,089 respectively. In terms of value the net sales slightly increased by 2% from 11.0 billion to Rs.11.2 billion. The pre-tax profit was Rs.1,120 million against Rs.840 million of last year reflecting an increase of 33%. The profit after tax was also increased by 27% from Rs.637 million previous year to Rs.810 million.
During the year wage increases followed with increases in prices of steels and petroleum products have sharply increased the cost of production. Further, exchange rates have also firmed up. Power outages, however, continue to be a major cause of concern.
The administrative, general and selling expenses increased to Rs.572 million as compared to Rs.530 million of previous year due to increase in sales volume.
Other income during the period was 322 million compared to Rs.333 million previous year.
The break-up value of a share was Rs.162.14 compared to Rs.143.88 of last year. Return on capital employed was 27.24%.
Earning/ Dividend per share in Rupees is given below:
DIVIDEND PER SHARE
An earning per share over last year increased by 29.3% and dividend per share is exceeded by 47.7%.
The company's market share was 63% as against 53% in the preceding year.
Summary of the financial performance for the years ended June is given below:
RS. IN '000'
RS. IN '000'
Sales - net
Cost of sales
Distribution and marketing expenses
Other operating income
Other operating expenses
Profit before taxation
Profit for the year
Earning per share basis and diluted (Rupees)
CONTRIBUTION TO NATIONAL EXCHEQUER:
Millat Tractor is contributing huge amounts to the National Exchequer in the form of Corporate Income Tax in addition to Company's Contribution towards saving in foreign exchange on account of locally developed components of tractors. During the year under review, the Company paid Rs.335 million and saved Rs.19.790 million. Foreign exchange savings increased 12.8% over previous year.
FOREIGN EXCHANGE SAVINGS:
RS. IN MILLION
Political uncertainty, unsatisfactory security environment and a disturbed law and order situation on the domestic front and international financial market crisis and the down grading of Pakistan's credit rating by Standard & Poor's and Moody's on international front have played major roles in dampening the investor's sentiments.
However, despite the above factors the Company's outlook is positive and it is confident enough to meet all the challenges in the future years ahead.