Qudsia Bano

Agriauto Industry Limited’s revenue from sales decreased by 31% to Rs1.36 billion in the first quarter of the ongoing financial year 2022-23 (1QFY23) compared to Rs1.97 billion over the corresponding period of the previous fiscal. Also, the gross profit of the company decreased by 56% to Rs123.8 million in 1QFY23 from Rs281.9 million recorded in 1QFY22. The company posted a net profit of Rs35.8 million in 1QFY23 compared to a profit of Rs134 million over the corresponding period of FY22, showing a negative growth of 73% year-on-year, according to an analysis of the company’s statistics conducted by WealthPK.

The company’s sales dropped as a result of the State Bank of Pakistan’s restriction, requiring prior authorisation for the import of completely knocked-down units in view of the dwindling foreign exchange reserves. As a result of ongoing holdups and approval delays, the supply chain cycle was disrupted and vehicle assemblers compelled to limit production.

Performance in 2021-22

During the fiscal year 2021-22, the company’s gross sales went up to Rs15.4 billion from Rs10.4 billion in FY21, posting a massive increase of 47% year-on-year.   The gross profit for FY22 stood at Rs1.9 billion, 15% up from Rs1.7 billion in FY21. The profit-after-tax for the year went down by 11% to Rs736.8 million from Rs829.6 million in FY21. Profit declined primarily as a result of the negative effects of extremely volatile foreign exchange position, greater financial costs, and a 4% super tax imposed by the government.

The earnings per share of the company showed a mix trend during recent years, except for FY19, when the EPS stood at minus R3.77.

About the company

Agriauto Industries Limited was incorporated in Pakistan on June 25, 1981, as a public limited company. The company is engaged in the manufacture and sale of components for automotive vehicles, motorcycles and agricultural tractors.

Credit: Independent News Pakistan-WealthPk