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 with current free float of ~50%.The Company's registered office and plant is at Plot No. DSU 19 sector - II Pak Steel Industrial Estate, Bin Qasim Industrial Area, Karachi.

Since its inception, Loads Limited has evolved into a leading manufacturer in Pakistan’s automotive parts industry. The principal activity of the Company is the manufacturing and sale of radiators, exhaust systems, and other automotive components. Operating as a key entity within the Ali Group and maintaining a close strategic association with Treet Corporation Limited (the Group), Loads Limited has developed a strong industrial footprint, supported by four wholly owned subsidiaries: Specialized Auto Parts Industries, Multiple Auto Parts Industries, Specialized Motorcycles, and Hi-Tech Alloy Wheels.

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The Company manufactures radiators, exhaust systems, and sheet metal components for automobiles, offering a diverse product range. Its key clients include Toyota, Honda, Suzuki, Hino, Nissan, Isuzu, Massey Ferguson, Mitsubishi, Yamaha, among others. The Company ensures high quality through technical collaborations with leading Japanese companies, including Toyo Radiator Company, Futaba Industrial Company, Sankei Giken Kogyo, Yutaka Giken, Hamamatsu Pipe, and Futaba. These collaborations have facilitated the adoption of the latest technologies and the installation of state-of-the-art machinery for the manufacture of radiators and exhaust systems. The Company operates two manufacturing plants; DSU 19 and DSU 38, located at Port Qasim, Karachi. In addition, Loads maintains an in-house die designing and manufacturing facility, equipped with advanced CNC automatic machines.

The major stake (~37.7%) is held by Mr. Syed Shahid Ali. While Treet Corporation Limited (Associated Company) holds (~12.49%), followed by Others (~9.6%) and the general public (~38.33%). The institutional and foreign investors collectively hold less than 1%.

Load's ownership structure is considered stable, with no significant changes in the shareholding pattern expected in the near term. The majority stake remains with the sponsor and associated company, Treet Coporation Limited, which provides continuity in ownership, strategic direction, and oversight.

The Sponsors, Treet Corporation Limited, a well-established Pakistani conglomerate, is considered to have strong business acumen, underpinned by over seven decades of operating history and continuous innovation in Pakistan. The Group maintains a diversified business portfolio spanning automotive, personal care, healthcare, packaging, and energy storage, which supports earnings resilience and strategic flexibility. The Group is led by experienced professionals with strong academic and industry backgrounds. The Group is widely recognized for its consistent quality standards and operational reliability, as evidenced by the repeated receipt of Quality Excellence Awards from leading OEM customers, including Toyota, Honda, Suzuki, and Hino in Pakistan. Moreover, the Sponsors' ability to identify and capitalize on investment opportunities is reflected in the successful diversification into subsidiaries.

The Group, Treet Corporation Limited, with an asset base of ~PKR 12.5 billion and equity of around PKR 8 billion, maintains a diversified portfolio of strategic investments across multiple sectors through its wholly owned subsidiaries, developed over more than seven decades of operational presence. This portfolio comprises well-established business entities that collectively underscore the Group’s considerable financial strength and enhance its capacity to provide timely financial and operational support to the Company, if required.

The overall control of the Company lies with a seven-member Board. The BoD comprises four Non – Executive, one Executive, and two Independent Directors. The Board has a dominating presence of Sponsors with 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. Ms. Zunaira Dar has been recently appointed as a Non Executive Director in place of Mr. Shamim A. Siddiqi on 16 July 2025. She has overall experience of more than 17 years. Other members of the Board carry diversified professional experience and have served in leading positions.

The Board of Directors meets quarterly with structured agendas to steer the Company’s strategic direction and monitor management performance. Comprehensive minutes are maintained, capturing key deliberations, directives, and action plans. To strengthen governance, the Board has constituted two sub-committees, the Audit Committee and the HR & Remuneration Committee, each chaired by an independent director. These committees play a pivotal role in ensuring oversight, accountability, and alignment with best corporate governance practices, thereby enhancing the overall effectiveness of the Board.

External Auditors M/S Yousaf Adil, Chartered Accountants,  has issued an unqualified audit report pertaining to the financial statements for FY25. 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 Resource & 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 CFO. While, Heads of operational departments report to Chief Executive Officer (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 Chief Executive Officer (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 was appointed as the Chief Financial Officer (CFO) of the Company in FY25 and has been associated with the Company since 2009. 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 use 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 maintains a sound internal control framework, supported by clearly defined lines of responsibility, authority, and accountability. A dedicated internal audit function, staffed with qualified professionals, is in place to assess the effectiveness of internal controls and ensure compliance with regulatory requirements, reliable financial reporting, and operational efficiency. Furthermore, the Company holds ISO 9001 and ISO 14001 certifications, reflecting its commitment to maintaining high quality and environmental management standards.

Pakistan’s automotive parts industry forms part of Large-Scale Manufacturing (LSM), which accounts for ~67.5% of manufacturing value and ~8% of GDP, while the automobile sector itself represents ~3.1% of LSM Sector research automotive. The industry remains highly fragmented, with over ~1,600 vendors, including ~400 Tier-1 suppliers catering directly to OEMs such as Pak Suzuki, Indus Motor, Honda Atlas, and Lucky Motor Corporation Sector research automotive. Demand is primarily driven by OEM production, supplemented by the replacement market and limited exports, while a meaningful portion of OEM demand continues to be met through imports of high-tech components and CKD kits, which rose to PKR ~90.2bn in FY25 amid demand recovery Sector research automotive. The sector remains highly sensitive to inflation, interest rates, and exchange rate volatility, given its heavy reliance on imported raw materials, which comprise over ~80% of total costs, though margins and volumes showed improvement in FY25 following macroeconomic stabilization.

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 (~61%), sheet metal components (~35%), and radiators (~4%). During FY25, the Company witnessed a growth in revenue by ~34%, reported at ~PKR 6,033mln (FY24: ~PKR 4,490mln) due to increased demand in the auto industry. During 3MFY26, the Company reported revenue of ~PKR 1,986 million (3MFY25: ~PKR 1,227 million), reflecting a robust 62% year-on-year growth and indicating a strong continuation of momentum into FY26.

Gross profit margin during FY25 clocked in at ~22.2% (FY24: ~19.6%), primarily driven by a decline in manufacturing expenses. This improvement translated into stronger operating performance, with the operating margin reported at ~16.5% (FY24: ~13.8%). However, the net profit margin witnessed a notable decline to ~8.1% (FY24: ~16.3%), mainly due to the absence of a one-off gain on disposal of Korangi land and building recorded in FY24. During 3MFY26, the Company’s gross profit margin stood at ~22.0% (3MFY25: ~25.2%), while the net profit margin was reported at ~7.7% (3MFY25: ~6.5%). Going forward, margins are expected to normalize around sustainable operating levels, with profitability largely driven by core manufacturing performance in the absence of one-off income items.

The Company has devised a formal business plan to revamp Loads sustainability issues. Successful implementation of these plans remains imperative to ratings. Moreover, sponsors' technical and financial support provides comfort. This, along with the management's stringent efforts to sell the asset (Hi-Tech), is expected to bring in substantial liquidity.

In FY25, net working capital days improved to ~54 days (FY24: ~95 days), primarily driven by a reduction in inventory days (FY25: ~56 days; FY24: ~84 days) and an increase in trade payable days to ~47 days (FY24: ~38 days). Trade receivable days also declined to ~46 days (FY24: ~49 days). During 3MFY26, net working capital days further reduced to ~37 days (3MFY25: ~89 days), reflecting a significant decrease in gross working capital days to ~79 days (3MFY25: ~125 days). Going forward, the working capital cycle is expected to remain efficient, supported by disciplined inventory management and improved creditor terms, which should help sustain lower net working capital requirements.

In FY25, the Company’s EBITDA increased by ~44% to ~PKR 959 million (FY24: ~PKR 667 million), supported by a profit before tax of ~PKR 797 million (FY24: ~PKR 257 million). This translated into a stronger EBITDA-to-finance cost coverage of ~4.2x (FY24: ~1.2x). During 3MFY26, EBITDA rose by ~19% to ~PKR 304 million (3MFY25: ~PKR 256 million), driven by a profit before tax of ~PKR 252 million (3MFY25: ~PKR 154 million). The EBITDA-to-finance cost coverage improved to ~4.1x (3MFY25: ~2.1x). Overall, the improvement in earnings and coverage metrics underscores the Company’s enhanced debt-servicing capacity and a more resilient financial profile.

As of FY25, the leveraging ratio stood at ~17.2% (FY24: ~24.4%), reflecting a reduction in both short-term and long-term borrowings as the Company streamlined its working capital requirements through internal cash flows. Consequently, total borrowings (including long-term and short-term) declined by ~28% to ~PKR 894 million (FY23: ~PKR 1,235 million). Equity posted an uptick on account of profit accumulation and stood at ~PKR 4,317 million (FY23: ~PKR 3,829 million). In 3MFY26, the leveraging ratio increased to ~25.1% (3MFY25: ~24.0%), driven by a ~21% rise in total borrowings to ~PKR 1,500 million (3MFY25: ~PKR 1,236 million). Equity continued to strengthen due to profit accumulation and stood at ~PKR 4,417 million (3MFY25: ~PKR 3,909 million). Looking ahead, leverage is expected to remain manageable, supported by a growing equity base and the Company’s ability to fund operations and working capital requirements through internally generated cash flows.