Al-Ghazi Tractors Limited

ABOUT THIS COVER

As we embark on the next phase of our

journey, we remain steadfast in our
commitment to delivering superior value
to our stakeholders while upholding the
highest standards of corporate governance,
ethics, and social responsibility. With a clear
strategic vision, a resilient business model,
and a passionate team driving us forward,
we are well-positioned to capitalize on
emerging opportunities and overcome
future challenges.
 First Quarter Report for the period ended March 31, 2025

CONTENTS

Organizational Overview and

External Environment
02 Company Information

Messages for Stakeholders

04 Directors’ Report

Financial Statements
06 Condensed Interim Statement of Financial Position
07 Condensed Interim Statement of Profit or Loss
08 Condensed Interim Statement of Changes in Equity
09 Condensed Interim Statement of Cash Flows
10 Notes to the Condensed Interim Financial Statements
02 Al-Ghazi Tractors Limited

COMPANY INFORMATION

Board of Directors Chief Executive Officer Technical Committee

Mr. Robert Ian McAllister Mr. Sakib Eltaff Mr. Shahid Shahbaz Toor
Chairman, Non-Executive Director Chairman, Independent Director

Mr. Dmitrii Bogatyrev Audit Committee Mr. Robert Ian McAllister

Non-Executive Director Member, Non-Executive Director
Mr. Malik Mirza
Mr. Malik Ehtisham Ikram Chairman, Independent Director Mr. Matthieu Séjourné
Non-Executive Director Member, Non-Executive Director
Mr. Marco Votta
Mr. Marco Votta Member, Non-Executive Director Mr. Vincent De Lassagne
Non-Executive Director Member, Non-Executive Director
Mr. Malik Ehtisham Ikram
Mr. Matthieu Sejourné Member, Non-Executive Director Mr. Malik Ehtisham Ikram
Non-Executive Director Member, Non-Executive Director

Mr. Vincent De Lassagne Human Resource & Mr. Marco Votta

Non-Executive Director Remuneration Committee Member, Non-Executive Director

Mr. Shahid Shahbaz Toor Ms. Samiha Zahid Mr. Dmitrii Bogatyrev
Independent Director Chairperson, Independent Director Member, Non-Executive Director

Mr. Mirza Malik Mr. Marco Votta

Independent Director Member, Non-Executive Director Chief Financial Officer
Ms. Samiha Zahid Mr. Malik Ehtisham Ikram Mr. Javed Iqbal
Independent Director Member, Non-Executive Director

Mr. Sakib Eltaff Company Secretary

Member, CEO
Mr. Mansoor Khan
 First Quarter Report for the period ended March 31, 2025 03

Chief Internal Auditor Share Registrar Plant

Sakhi Sarwar Road,,
Mr. Muneeb Ahmed Khan FAMCO Shares Registration P.O. Box 38,
Dera Ghazi Khan.
Services (Pvt) Limited Tel: (92 64) 2463750, 2463812, 2020750-51
Auditors 8-F, Adjacent to Hotel Faran,
Block 6, P.E.C.H.S., Near Nursery,
A.F. Ferguson & Co. Shahrah-e-Faisal, Karachi.
Marketing Centres
Chartered Accountants Tel: (92 21) 34380101-5
Dera Ghazi Khan
Fax: (92 21) 34380106
Lahore
Tax Advisors Multan
Registered Office Islamabad
EY Ford Rhodes Sukkur
Chartered Accountants Tractor House
102-B, 16th East Street, DHA Phase I,
Tola Associates off Korangi Road, Karachi.
Chartered Accountants Tel: (92 21) 35318901-5
Fax: (92 21) 35660882
KPMG Taseer Hadi & Co. Email: [email protected]
Chartered Accountants Website: www.alghazitractors.com

Legal Advisors Corporate Office

Orr, Dignam & Co. Askari Corporate Tower
Advocates 9th Floor, 75/76 D-1, Main Boulevard,
Engagement Partner: Mr. Shahzaib Siddiqui Gulberg – lll, Lahore
04 Al-Ghazi Tractors Limited

DIRECTORS’ REPORT

The Directors are Financial Review

During the period under review, the Company sold 1,422 tractors,
pleased to present a decline of 62.52% compared to the 3,794 units sold during the
the condensed corresponding period last year. This downturn is primarily influenced
by macroeconomic uncertainty, challenging taxation environment, and
interim financial continued pressure on farmer economics. Farmers, already affected by
information of the wheat crisis of the previous year, faced additional constraints due
to the discontinuation of the Punjab Government’s wheat procurement
Al-Ghazi Tractors program – a development that further tightened rural liquidity and
negatively affected the purchasing capacity within the Company’s core
Limited (“the customer base.
Company”) for the
Contributing further to the subdued demand is the limited availability
period ended 31 of affordable tractor financing which hindered farmers’ ability to invest
March 2025. in mechanization. In parallel, the rollout of Punjab Government’s Green
Tractor Scheme, while well intentioned, led to distortion of the seasonal
buying pattern. Early indicators suggest that the total industry volume
in 2025 may contract, posing ongoing challenges to recovery in the near
term. However, recent developments such as the Punjab Government’s
approval of a Rs. 15 billion relief package under the Kisan Card for wheat
farmers signal renewed policy attention towards revival – offering
cautious optimism for improved farmer liquidity and a potential support
to the sector.

Despite these challenges, the Company during the period under review
secured a Sales Revenue of Rs.3.64 billion, representing a decrease
of 61.71% compared to the revenue of Rs.9.50 billion recorded in the
corresponding quarter of the previous year. The cost of sales also saw a
decrease of 61.34% to Rs.2.86 billion from Rs.7.39 billion in the previous
corresponding period. The gross profit for the quarter ended on March 31,
2025 reached Rs.0.78 billion, reflecting a substantial decrease of 63.01%
from the gross profit of Rs.2.11 billion accrued during the corresponding
period of the last financial year. Furthermore, the Company earned an
operating profit of Rs.0.15 billion during this period, marking a decrease of
89.26% compared to Rs. 1.44 billion during the same period last year.

During the period under review, distribution expenses amounted to Rs.

0.13 billion, reflecting a 26.11% decrease compared to the same period
in the financial year 2024. Whereas administrative expenses totaled Rs.
0.41 billion, showing a slight increase of 3.69% compared to the
corresponding period.

The post-tax profit for the three-month period ended March 31, 2025,
amounted to Rs. 0.06 billion, representing a substantial decrease of
93.13% compared to Rs. 0.85 billion for the same period last year. The
earnings per share (EPS) for the quarter under review are Rs. 1.01, which
is significantly lower than the Rs. 14.72 reported for the same period last
year.
 First Quarter Report for the period ended March 31, 2025 05

The Company’s annexed financial statements have been recommended

by the Audit Committee of the Board and are authorized by the Board for
placement on the Company’s website.

Future Outlook
Despite the aforementioned challenging business environment, the
Company remains steadfast in its commitment to prudent operational
management and long-term strategic resilience. During the period, the
Company successfully secured a tender for the supply of 1,000 tractors
(below 85 HP) under the Government of Punjab’s Wheat Tractor Scheme
— a development that reinforces confidence in the Company’s product
portfolio which is catering to the evolving demands of our customers
through continuous innovation.

The Company continues to closely monitor developments in the

macroeconomic and policy environment and remains focused on steering
through these challenges with disciplined execution, operational agility,
and a forward-looking strategic approach.

Acknowledgement
The Board would like to place on record all stakeholders, especially its
customers as well as the vendors and suppliers, for their continued
commitment and support to the Company. The Board would also like
to appreciate the contribution of all staff members of the Company for
performing their tasks with dedication, diligence and commitment in a
challenging business environment.

On behalf of the Board of Directors

Robert Ian McAllister Sakib Eltaff

Chairman of the Board Chief Executive Officer

April 24, 2025

06 Al-Ghazi Tractors Limited

CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

As at March 31, 2025 (Un-Audited)

(Un-audited) (Audited)
March 31, Dec 31,
2025 2024
Note (Rupees in thousand)

ASSETS

NON-CURRENT ASSETS
Fixed assets 5 1,795,391 1,838,546
Intangible assets 440,851 451,160
Deferred tax asset 181,473 79,051
Long-term loans 2,308 2,355
Long-term deposits 13,587 13,864
2,433,610 2,384,976
CURRENT ASSETS
Inventories 6,706,294 5,764,333
Trade receivables 2,407,912 5,052,051
Loans and advances 1,917,807 984,688
Trade deposits and short-term prepayments 113,113 107,456
Interest accrued 1,897 344
Other receivables 50,018 49,327
Refunds due from the Government 5,372,149 5,072,477
Cash and bank balances 361,169 976,090
16,930,359 18,006,766
TOTAL ASSETS 19,363,969 20,391,742

SHARE CAPITAL AND RESERVES

Share capital 289,821 289,821
Unappropriated profit 8,965,673 8,907,092
9,255,494 9,196,913
NON-CURRENT LIABILITIES
Deferred staff benefits - compensated absences 114,721 102,052
Lease liability 31,476 31,476
Employee benefit obligations 20,449 58,763
166,646 192,291

CURRENT LIABILITIES
Trade and other payables 4,610,154 5,383,665
Customers’ and dealers’ advances 251,334 490,732
Taxation - payments less provision 84,700 206,131
Unclaimed Dividend 60,918 60,918
Unpaid Dividend 2,415,654 2,416,858
Current portion of Lease Liability 14,943 14,943
Short term financing 2,504,126 2,429,291
TOTAL LIABILITIES 10,108,475 11,194,829
COMMITMENTS 6
TOTAL EQUITY AND LIABILITIES 19,363,969 20,391,742

The annexed notes 1 to 12 form an integral part of this condensed interim financial information.

Director Chief Executive Officer Chief Financial Officer

 First Quarter Report for the period ended March 31, 2025 07

CONDENSED INTERIM STATEMENT OF PROFIT OR LOSS

AND OTHER COMPREHENSIVE INCOME
For the First Quarter ended March 31, 2025 (Un-Audited)

March 31, March 31,
2025 2024
Note (Rupees in thousand)

Revenue from contracts with customers 7 3,635,965 9,496,684

Cost of sales 8 (2,855,458) (7,386,468)

Gross profit 780,507 2,110,216

Distribution expenses (133,911) (181,225)

Administrative expenses (409,725) (395,130)

236,871 1,533,861

Other income 36,183 32,058

Other operating expenses (118,338) (125,460)

154,716 1,440,459

Finance costs (52,116) (50,131)

Profit before income tax 102,600 1,390,328

Income tax expense (44,019) (537,012)

Profit after income tax 58,581 853,316

Other comprehensive income - -

Total comprehensive income 58,581 853,316

Basic and diluted earnings per share 1.01 14.72

The annexed notes 1 to 12 form an integral part of this condensed interim financial information.

Director Chief Executive Officer Chief Financial Officer

08 Al-Ghazi Tractors Limited

CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

For the First Quarter ended March 31, 2025 (Un-Audited)

Share General Unappropriated

capital reserve profit Total
(Rupees in thousand)

Balance as at January 1, 2025 289,821 - 8,907,092 9,196,913

Transactions with the owners

recorded directly in equity

Profit after tax for the three months

ended March 31, 2025 - - 58,581 58,581

Other comprehensive income for the

three months ended March 31, 2025 - - - -
- - 58,581 58,581
Balance as at March 31, 2025 289,821 - 8,965,673 9,255,494

Balance as at January 1, 2024 289,821 - 5,490,404 5,780,225

Transactions with the owners

recorded directly in equity

Profit after tax for the three months

ended March 31, 2024 - - 853,316 853,316

Other comprehensive income for the

three months ended March 31, 2024 - - - -
- - 853,316 853,316
Balance as at March 31, 2024 289,821 - 6,343,720 6,633,541

The annexed notes 1 to 12 form an integral part of this condensed interim financial information.

Director Chief Executive Officer Chief Financial Officer

 First Quarter Report for the period ended March 31, 2025 09

CONDENSED INTERIM STATEMENT OF CASH FLOWS

For the First Quarter ended March 31, 2025 (Un-Audited)

March 31, March 31,

2025 2024
Note (Rupees in thousand)

CASH FLOW FROM OPERATING ACTIVITIES

Cash generated from operations 9 (193,187) 968,682
Income tax paid (356,068) (604,653)
Finance cost paid (52,116) (8,778)
Increase/(Decrease) in employee benefit obligations 9,309 13,760
(Increase)/Decrease in long-term deposits (47) (589)
(Increase)/Decrease in long-term loans 277 387
Net cash generated from operating activities (591,832) 368,809

CASH FLOW FROM INVESTING ACTIVITIES

Additions to fixed assets (107,599) (138,461)
Proceeds from disposal of fixed assets - 9,559
Return on bank deposits received 21,768 22,212
Net cash used in investing activities (85,831) (106,690)

CASH FLOW FROM FINANCING ACTIVITY

Dividend paid (1,205) (1,993)
Lease rentals paid (10,888) (9,206)

Net increase / (decrease) in cash and cash equivalents (689,756) 250,920

Cash and cash equivalents at the beginning of period (1,453,201) 74,796

Cash and cash equivalents at the end of period (2,142,957) 325,716

The annexed notes 1 to 12 form an integral part of this condensed interim financial information.

Director Chief Executive Officer Chief Financial Officer

10 Al-Ghazi Tractors Limited

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

For the First Quarter ended March 31, 2025 (Un-Audited)

1. THE COMPANY AND ITS OPERATIONS

1.1 The Company was incorporated in Pakistan under the Companies Act, 1913 (now Companies Act, 2017) as a public
limited company in June, 1983 and is quoted on the Pakistan Stock Exchange. The Company is principally engaged
in the manufacture and sale of agricultural tractors, implements and spare parts.
The Company is a subsidiary of Al-Futtaim Industries Company LLC, U.A.E and it’s ultimate parent is Al-Futtaim
Holding Limited, U.A.E.
The financial statements are presented in Pak Rupee which is the Company’s functional and presentation currency
and all amounts have been rounded off to nearest thousands unless otherwise indicated.

1.2 The geographical locations and addresses of the Company’s business units, including plant are as under:
- The registered office of the Company is situated at Tractor House, 102-B, 16th East Street, DHA Phase I, Off.
Korangi Road, Karachi.
- Corporate office situated at Askari Corporate Tower, Plot No. 75D, 76D LDA Scheme Gulberg III, District Lahore
- The assembling plant of the Company is situated at Sakhi Sarwar Road, P.O. Box 38, Dera Ghazi Khan
- The marketing centers of the Company are situated at:
• J6CV - 58, Sheikhupura Road, Lahore
• Plot No. 20, Industrial Estate, Near Mill No. 4, Multan
• Plaza No. 4, 2nd Floor, Sector A, Jinnah Boulevard (East), DHA Phase II, Islamabad
• House No. B-166, Sukkur Society, 100 FT Road, Opposite JS bank, Sukkar.

2. SUMMARY OF MATERIAL ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these condensed interim financial statements are set
out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

2.1.1 Statement of compliance

These financial statements have been prepared in accordance with the accounting and reporting standards as
applicable in Pakistan. The accounting and reporting standards applicable in Pakistan comprise of:

- International Financial Reporting Standards (IFRS Standards) issued by the International Accounting Standards
Board (IASB) as notified under the Companies Act, 2017;

- Islamic Financial Accounting Standards (IFAS) issued by the Institute of Chartered Accountants of Pakistan as
notified under the Companies Act, 2017; and

- Provisions of and directives issued under the Companies Act, 2017.

Where provisions of and directives issued under the Companies Act, 2017 differ from the IFRS Standards, the
provisions of and directives issued under the Companies Act, 2017 have been followed.

These condensed interim financial statements do not include all the information required to be contained in the
annual financial statements and therefore should be read in conjunction with the annual audited financial statements
for the year ended December 31, 2024.

2.1.2 Changes in accounting standards, interpretations and pronouncements

a) Standards, interpretations and amendments to published approved accounting standards that are
effective
There are certain amendments and interpretations to the accounting and reporting standards which are
mandatory for the Company’s condensed accounting period which began on January 1, 2025. However, these
do not have any significant impact on the Company’s financial reporting.
 First Quarter Report for the period ended March 31, 2025 11

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

For the First Quarter ended March 31, 2025 (Un-Audited)

b) Standards and amendments to published approved accounting standards that are not yet effective
There are standards and certain other amendments to the accounting and reporting standards that will be
mandatory for the Company’s condensed accounting periods beginning on or after January 1, 2025. However
these are considered either not to be relevant or not to have any significant impact on the Company’s financial
statements and operations and, therefore, have not been disclosed in these financial statements.

3. ACCOUNTING POLICIES
The accounting policies and methods of computation adopted in the preparation of this condensed interim financial
statements are the same as those applied in the preparation of the preceding annual financial statements of the
company for the year ended December 31, 2024.

4. ACCOUNTING ESTIMATES, JUDGEMENTS AND FINANCIAL RISK MANAGEMENT

The preparation of these condensed interim financial statements in conformity with approved accounting standards
requires management to make estimates, assumptions and use judgements that affect the application of policies and
reported amounts of assets and liabilities and income and expenses. Estimates, assumptions and judgements are
continually evaluated and are based on historical experience and other factors, including reasonable expectations
of future events. Revisions to accounting estimates are recognised prospectively commencing from the period of
revision.
Judgements and estimates made by the management in the preparation of these condensed interim financial
statements are the same as those that were applied to annual audited financial statements for the year ended
December 31, 2024.
The Company’s financial risk management objectives and policies are consistent with those disclosed in the annual
audited financial statements for the year ended December 31, 2024.

5. FIXED ASSETS
Additions and disposals of assets during the period are as follow:
Additions Disposals / Transfers
(at cost) (at net book value)
March 31, March 31, March 31, March 31,
2025 2024 2025 2024
(Rupees in thousand)

Building - 488 - -
Electrical Equipment - 167 - -
Plant and machinery - 7,571 - -
Furnitures and fixtures 4,955 687 - -
Computer hardware 33,551 2,417 - 147
Vehicles 15,685 - - -
Factory equipment and tools 99 842 - -
Additions to capital work in progress 53,310 126,288 - -
Total 107,599 138,461 - 147

6. COMMITMENTS
Commitments for capital expenditure outstanding as at March 31, 2025 amounted to Rs 429.2 million (2024:
Rs. 459.6 million).
March 31, March 31,
2025 2024
(Rupees in thousand)

7. REVENUE FROM CONTRACTS WITH CUSTOMERS

Tractors 4,189,608 9,781,334
Trading goods and others 59,277 80,824
4,248,885 9,862,158
Less: Commission and discounts (96,533) (349,432)
Sales Tax (516,387) (16,042)
3,635,965 9,496,684
12 Al-Ghazi Tractors Limited

NOTES TO THE CONDENSED INTERIM FINANCIAL INFORMATION

For the First Quarter ended March 31, 2025 (Un-Audited)

March 31, March 31,

2025 2024
(Rupees in thousand)

8. COST OF SALES
Cost of goods manufactured 4,007,094 8,171,192
Opening stock of finished goods 768,784 945,811
Closing stock of finished goods (1,938,071) (1,775,795)
Cost of manufactured goods sold 2,837,807 7,341,208
Cost of trading goods and others sold 17,651 45,260
2,855,458 7,386,468

9. CASH GENERATED FROM OPERATIONS

Profit before taxation 102,600 1,390,328
Add/(Less) : Adjustment for non cash charges and other items
Depreciation and amortization 122,427 52,156
Retirement benefits charge 9,309 32,039
Gain on disposal of fixed assets - (9,412)
Profit on PLS savings and deposit accounts (20,478) (20,896)
Interest on lease liability 2,272 2,318
Mark up on running finance 45,935 46,872
262,064 1,493,405

Effect on Cash Flow due to Working Capital changes

(Increase) / Decrease in current assets
Inventories (995,773) (2,248,532)
Trade receivables 3,273,990 (663,687)
Loans and advances (966,481) (129,697)
Trade deposits and short-term prepayments 249,038 212,578
Other receivables 32,363 1
Refunds due from the Government (299,672) (5,094)
1,293,465 (2,834,431)

Increase in current liabilities

Trade and other payables (1,761,612) 2,302,331
Customers’ and dealers’ advances 12,895 7,377
Cash generated from operations (193,187) 968,682

10. RELATED PARTY TRANSACTIONS

There are no Significant transactions (royalty and Al-Futtaim Logistics) during the period (2024: Rs.719.25 million).

11. SUBSEQUENT EVENTS

The Board of Directors in its meeting held on April 24, 2025 declared an interim cash dividend of Rs. Nil Per share
(2024: Rs. Nil per share).

12. DATE OF AUTHORISATION OF ISSUE

These condensed interim financial statements were authorised for issue on April 24, 2025 by the Board of
Directors.

Director Chief Executive Officer Chief Financial Officer