Karachi: The financial year ended June 30, 2024, marked a significant upturn for GTR Tyre and Rubber Company Limited, with net sales climbing by 37% to reach Rs. 20.54 billion compared to Rs. 15.02 billion in the previous year.

The surge in revenue is attributed to a robust performance in the Replacement market (RM) and a diversified product line in the Original Equipment Manufacturer (OEM) segment. According to information available from the Pakistan Stock Exchange (PSX), better agricultural outputs and favorable weather conditions spurred higher sales of tractor tyres, which offset the sluggish passenger car OEM sales impacted by economic conditions and restricted letter of credit openings.

Export sales also saw a rise, from Rs. 219 million last year to Rs. 295 million, as GTR Tyre continued to explore new markets. The gross profit for the year stood at Rs. 3.28 billion, improving the gross margin to 16.0% from 15.3% a year earlier, mainly due to better sales mix and stable exchange rates.

However, the finance cost increased to Rs. 1.68 billion up from Rs. 1.29 billion, primarily due to a hike in the discount rate by the State Bank of Pakistan and a higher need for working capital following the devaluation of the Pakistani Rupee.

Despite these challenges, the company turned a profit after tax of Rs. 229.1 million, a significant recovery from a loss of Rs. 167.4 million in the previous year. The independent rating agency PACRA maintained the company’s long-term rating at A+ and short-term rating at A1, reflecting a stable outlook in the automotive and allied sectors.