Karachi: Panther Tyres Limited has announced a significant 38% increase in its top-line growth, reaching Rs. 29.52 billion for the fiscal year ending June 30, 2024. This marks a continuation of the company's robust performance, maintaining a compound annual growth rate (CAGR) of over 25% for the past five years.
The company's sustained growth across all business segments—including OEM, exports, and the replacement market—has been a key driver of its success. Despite the inflationary pressures that have increased operational costs across the sector, Panther Tyres has successfully maintained a gross margin of 14.57%, consistent with the previous year's figures.
According to information available from the Pakistan Stock Exchange (PSX), this financial accomplishment comes amidst a broader surge within the tyre industry. The entire sector experienced significant gains, with an average growth surpassing 30%, much higher than the typical market growth rate of 10-15%. This growth was particularly fueled by a rebound in the OEM industry, new export opportunities, and strong consumer demand in the secondary market.
However, Panther Tyres faced challenges with increased finance costs and taxes, which impacted net profitability. The total assets of the company grew by 25% to Rs. 23.64 billion, with fixed assets representing 52% of this total, reflecting the company's commitment to long-term growth and product diversification.
During the year, Panther Tyres also tackled significant regulatory challenges. The Ministry of Commerce, through SRO1397(I)/2023 dated October 3, 2024, has excluded tyres from the Afghan Transit Trade's allowed list, which the company anticipates will reduce the smuggling issues that have plagued the industry.
The company's creditworthiness remained stable, as affirmed by the Pakistan Credit Rating Agency Limited (PACRA), which maintained its credit ratings at 'A' for the long term and 'A1' for the short term. Additionally, Panther Tyres continued to invest in new technologies and infrastructure to enhance production capabilities, with significant capital investments totaling Rs. 4.05 billion aimed at increasing production capacity by 20% for tyres and 29% for tubes.
Governance at Panther Tyres has been robust, with a diverse board of directors that brings expertise from various fields, ensuring effective management and strategic decision-making.
In conclusion, the chairman of Panther Tyres expressed gratitude towards the board, partners, and stakeholders for their continued support, which has been instrumental in navigating the fiscal year's challenges and achieving substantial growth.