Millat Tractors suspends operations until further notice

• "The company will keep its production operations closed from Monday till further notice," firm informs PSX.
• The decision has been taken due to operational constraints.
• MTL last reported a 9% fall in its quarterly net profit.

KARACHI: Pakistan’s biggest agricultural machinery manufacturer — Millat Tractor — suspended its operations from today due to a severe liquidity crunch. 

“Due to operational constraints, the company will keep its production operations closed from Monday (March 7, 2022) till further notice,” the firm said in a notice sent to the Pakistan Stock Exchange (PSX).

Millat Tractors informed the bourse and all relevant federal ministries that the entire tractor manufacturing industry is facing a severe liquidity crunch as the industry’s over Rs8 billion sales tax refunds are stuck with the Federal Board of Revenue (FBR) for the last two years.

In February, the company reported a 9% fall in its quarterly net profit for the quarter ended December 31, on account of an increase in the cost of sales.

The company reported a net profit of Rs1.52 billion for the period under review, down from Rs1.68 billion the previous year.

The company had also announced an interim cash dividend of Rs45 per share.

Earnings per share (EPS) came in at Rs25.24 per share, compared with Rs24.54 per share during the same period last year.