Muhammad Noor Ul Haq
PACRA Maintains Entity Ratings of Panther Tyres Limited
Ratings take strength from strong industry positioning of Panther in its respective niches. The company has formidable market share in tyre and tube industry, especially in two wheel segment, whereas three wheel and four wheel segments are on the growth trajectory. The sponsors embarked upon a strategy to build a strong management team with a wholesome mandate: roles are clearly demarcated with high degree of delegation. The margins are sanguine though slightly constrained during FY17 due to build-up of significant inventory levels, however, the improving trend is visible in 1QFY18. Comfort is drawn from strong coverages coupled with adequate capital structure. Going forward, strong growth in auto sector amidst improving macro-economic conditions is expected to result in robust consumer demand. Panther is poised to take full advantage.
The ratings are dependent on the management's ability to sustain its business profile while benefiting from positive demand fundamentals; financial discipline is crucial. Moreover, strengthening of governance framework is pivotal for any growing business concern.
Panther Tyres Limited is an unquoted public limited company incorporated in 1983. The Company is primarily engaged in the production of tyres and tubes of vehicles. Panther is pioneer in the motorcycle tyre manufacturing industry of Pakistan. The company sells its product with the brand name “Panther” and it has since been renowned for quality products. These products are not only sold in the replacement market but also supplied to the auto industry of motorcycle, rickshaw and tractors. Mr. Mian Iftikhar Ahmed with his family own the entire shareholding of the Company. He is a renowned businessman and has previously been awarded with the “Best Businessman of the Year” title by Lahore Chamber of Commerce and Industry. He has also been the chairman of All Pakistan Tyres & Tubes Manufacturing Association.
The overall control of the Company vests in three members’ board of directors. Two are executive directors, including the chairman, while one is a non-executive member of the sponsoring family. Mr. Mian Iftikhar Ahmed is the thriving force behind the Company and is leading the business as a CEO/Chairman. He is supported by a team of qualified and experienced professionals.