Loads Limited ('Loads' or 'the Company') was incorporated on 01-Jan-79 as a private limited company. The Company was listed on the Pakistan Stock Exchange (PSX) in 2016. Over the years, the Company has expanded itself, and currently, it has four subsidiaries, including Specialized Autoparts Industries (Pvt) Ltd., Multiple Autoparts Industries (Pvt) Ltd., Specialized Motorcycles (Pvt) Ltd., and Hi-Tech Alloy Wheels Ltd. Primary business of these companies is the manufacturing and selling of motor vehicle parts. The Company manufactures radiators, exhaust systems, and sheet metal components for automobiles, showcasing a diverse product range. Key clients include Suzuki, Toyota, Honda, and others, including Hino, Nissan, Isuzu, Massey-Ferguson, Mitsubishi, and Yamaha. It operates two manufacturing plants, DSU 19 and DSU 38, situated at Port Qasim, Karachi. Additionally, Loads possesses an in-house facility for dye designing and manufacturing, equipped with advanced CNC automatic machines.

The major stake (~37.67%) is held by Mr. Syed Shahid Ali. While Treet Corporation Limited (Associated Company) holds (~12.49%), followed by Others (~10%), Directors (~0.14%), and Insurance Companies (~0.02%). The general public holds the remaining stake of ~39.68%. The ownership of the Company is expected to remain stable in the future. The Sponsors, Treet Corporation Limited, is a leading Pakistani conglomerate with over 70 years of experience and drives innovation across various industries such as automotive, personal care, healthcare, packaging, and energy storage. It operates through several listed and public subsidiaries or associated companies. Over the years, the Company maintained its financial strength. Going forward, in case of any financial support, the Sponsors will assist the Company.

The overall control of the Company lies with a seven-member Board. The BoD comprises four Non–Executive, one Executive, and two Independent Directors, including two female directors. The Chairman of the Board, Mr. Syed Shahid Ali, has more than four decades of experience and has been associated with the Company since 01-Jun-05. He is also the Chairman of Treet Corporation Limited and is on the Board of various companies. Other members of the Board carry diversified professional experience and have served in leading positions. During FY24, the Board met six times. The Board is assisted by two committees, namely, the Audit Committee and Human Resources & Remuneration Committee. Both committees are chaired by Independent Directors. The minutes of the meetings are formally documented. External Auditors M/S Yousaf Adil, Chartered Accountants, have issued an unqualified audit report pertaining to the financial statements for FY24. The firm is QCR rated and on SBP's panel in category "A".

The Company operates through nine departments, namely: (i) Finance, (ii) IT, (iii) Import, (iv) Human Resources & Admin (HR), (v) Technical, (vi) Special Project & Development, (vii) Production, (viii) Material Planning & Sales, and (ix) Quality Assurance / ISO. The Head of Finance, IT, and Import reports to the Chief Executive Officer (CEO) through direct reporting to the Chief Financial Officer (CFO). While Heads of operational departments report directly to the CEO, who then reports to the Board. However, the Head of Internal Audit and HR functionally reports to the respective Board committee, and administratively to the CEO. Mr. M. Mohtashim Aftab has been appointed as the CEO of Loads, effective from 17-May-24. He brings an overall experience of 30 years in business partnering, strategic planning, and risk management. He also serves as the CEO and Director of all subsidiaries of Loads. Mr. Mobin Akhter has been appointed as CFO of the Company in Jul-25 after the resignation of Mr. Shamim A. Siddiqui. Mr. M. Mobin Akhter has over two decades of experience. He has been associated with the Company since 2013. The other management team members are comprised of seasoned professionals, each with a range of expertise in their respective fields. The Company has an operational management committee to monitor overall operations. The committee is chaired by the CEO and comprises senior management. The committee meets monthly to monitor the operational challenges and strategies. The Company uses an SAP system for generating daily, weekly, and monthly reports, alongside other extensive data capabilities. It has upgraded its facilities and integrated advanced machinery to meet increased demand and enhance operational efficiency. The Company has obtained quality certifications IS0-14001 and IS0-9001, demonstrating its emphasis on producing high-quality products.

Pakistan's auto industry is a part of large-scale manufacturing, accounting for ~73% of the overall value of manufacturing activities within the country. The industry is fairly fragmented, with a large number of players. There are over ~2,000 Automotive Parts vendors in Pakistan, of which ~400 vendors belong to the Tier-1 category and are suppliers for the OEM market. The demand is primarily driven by auto sales and is met through OEMs, replacements, and export markets, while the remaining is met through imports. However, during FY24, production level and, thus, sales of the auto industry posted a decline, primarily due to import restrictions imposed by SBP, encompassing essentials like CKD and SKD kits. Overall, the sector’s margins remain sensitive to inflation, interest, and exchange rates. Loads primarily generate sales from exhaust systems and dominate nearly ~100% of the market share with major OEMs. The Company derives revenue from the sale of auto parts, including exhaust systems (~59%), sheet metal components (~38%), and radiators (~3%). During FY24, the Company witnessed a decline in revenue by ~0.1%, reported at ~PKR 4,490mln (FY23: ~PKR 4,494mln) due to decreased demand in the auto industry. Gross profit margin during FY24 clocked at ~19.6% (FY23: ~16.3%) due to a decline in manufacturing expenses. The effect trickled down to the operating margin, which was reported at ~13.8% (FY23: ~10.5%). The net profit margin witnessed a significant improvement, reported at ~18.4% (FY23: (~ 27.9%-loss)), attributed to the gain on the disposal of Korangi land and building. During 9MFY25, the Company witnessed an uptick of ~43% in revenue reported at ~PKR 4,346mln (9MFY24: ~PKR 3,032mln). Gross profit margins improved to ~21.8% (9MFY24: ~16.1%), which trickled down to net margin reported at ~6.6% (9MFY24: ~1.5%). Going forward, margins are expected to improve, reaping cost efficiency benefits. The Company has devised a formal business plan to revamp Loads sustainability issues. The successful implementation of these plans remains imperative to ratings. Moreover, sponsors' technical and financial support provides comfort.

As of FY24, the net working capital days improved to ~95 days (FY23: ~130 days), primarily attributable to decreased inventory days (FY24: ~84 days, FY23: ~109 days) along with an uptick in trade payable days reported at ~38 days (FY23: ~33days). Trade receivable days declined to ~49 days (FY23: ~54 days). As of FY24, the EBITDA of the Company increased by ~29% and stood at ~PKR 667mln (FY23: 516mln), owing to profit before tax of ~PKR 257mln (FY24: ~PKR 1,772mln-loss). This resulted in an improved EBITDA/Finance cost coverage reported at ~1.5x (FY23: ~1x). As of FY24, the leveraging ratio stood at ~24% (FY23: ~44%), owing to a ~48% reduction in short-term borrowings as the Company is streamlining its working capital requirement through internal cash flows. While total borrowings, including long-term and short-term borrowings, have reduced by ~47% and stood at ~PKR 1,235mln (FY23: ~PKR 2,312mln). Equity posted an uptick due to profit accumulation and stood at ~PKR 3,829mln (FY23: ~PKR 2,970mln). As of 9MFY25, net working capital days reduced significantly to ~57 days (9MFY24: ~99 days), primarily due to a reduction in inventory days reported at ~56 days (9MFY24: ~91 days). As of 9MFY25, EBITDA/Finance cost cover was reported at ~3.4x (9MFY24: ~1x) with the leveraging ratio of ~20.5% (9MFY24: ~26.8%). Shareholders' equity stood at ~PKR 4,115mln as of 9MFY25 (9MFY24: ~PKR 3,053mln). The Company is making efforts to manage its working capital cycle well to create a stable borrowing cushion and leverage ratio going forward.

Loads has issued a Privately Placed Short Term Sukuk (PPSTS) with an issue size of PKR 750mln, including a green shoe option of PKR 250mln. The tenor is for 9 months from the first day of subscription. The PPSTS carries a profit rate of 3-month KIBOR +2.5%. Kibor was locked during the tenor and was taken as one day before the disbursement. The proceeds will be mainly used to manage the additional working capital requirements to cater to the increased demand of OEMs. As represented by management, the enhanced demand is generated from Suzuki. The PPSTS will be redeemed in three quarterly installments.

Obligations to the holders of the PPSTS constitute secured obligations of Loads, ranking senior to all unsecured and subordinated indebtedness of the Company, except as otherwise required by law.

The PPSTS is secured. There is a Pari Passu charge on the Subsidiary's Plant and Machinery of the Company with a 25% margin. The Company shall deposit the principal and profit amount in the sukuk redemption account fifteen (15) days prior to the disbursement date of each quarter.