A sturdy growth in the large manufacturing sector reigns in the country, and Al-Ghazi Tractors Limited (AGTL), picking the benefit of an amplified demand for tractors, has stepped up production. The company booked highest ever profit in 9M-FY04 amounting to Rs 601.67 million (EPS: Rs 15.41) in the history, against Rs 571.59 million (EPS: Rs 14.64) in the same period of last year, showing an upsurge of 5 percent. The company announced a cash dividend of Rs 5 per share.
The net sales increased by 20 percent, to Rs 4.43 billion, as compared to Rs 3.70 billion registered in 9M-FY03. The gross profit of the company declined by 4 percent, to 24 percent, on account of costly imports of CKD kits, appreciation of pound sterling and increase in raw material prices.
The operating expenses slightly decreased by 2 percent to 55.92 million. While the selling and distribution expenses surged from Rs 40.19 million to Rs 42.91 million during 9M-FY04, there was a slight improvement in the other income by 2 percent to Rs 86.97 million.
The company sold 12,636 tractors, against 10,674 tractors, illustrating an increase of 16 percent during nine months period (January-September 2004), whereas 4,183 tractors were sold during 3Q-FY04 alone. The government had announced agricultural package for the farmers, which instituted the company to instantly introduce New Holland's niche products technology ie 105 hp TD 95S (Special) series tractors in two wheel and four-wheel drive. Further orders have been placed for import of New Holland's outstanding technical innovation (TC 54 Combine Harvester). The tractors will reach here soon.
Since the beginning of the current fiscal year, Al-Ghazi Tractors Ltd has depreciated by 16 percent (Price as on January 1, 2004: Rs 195.70/share) where the scrip also touched a high of Rs 205/share during the said period (Highest ever price level of Rs 205/share was recorded on April 7, 2004).