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The Pakistan Credit Rating Agency Limited
Press Release

Date
12-Apr-19

Analyst
Ayesha Qasim
ayesha.qasim@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains Entity Ratings of Panther Tyres Limited

Rating Type Entity
Current
(12-Apr-19 )
Previous
(27-Dec-18 )
Action Maintain Maintain
Long Term A- A-
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The ratings take strength from strong industry positioning of Panther Tyres in its respective niches. The company has a formidable market share in 2 & 3 wheeler tyre and tractor tyre segment of tyre & tube industry. The sponsors have built a strong management team with a wholesome mandate: roles are clearly demarcated with a high degree of delegation. The company has improved its overall organisation structure and is inculcating financial transparency as per Code of Corporate Governance. Revenue stream is segmented into Original Equipment Manufacturers (OEMs) and Replacement Market ,wherein replacement market has a higher inclination. The company's financial risk profile is demonstrated by stable margins, healthy coverages and adequate capital structure. Additionally, the company is strengthening its international presence. Going forward, demand from replacement market is expected to remain strong whereas the OEMs' demand is expected to remain range bound due to pass-on effect of increased costs.
The ratings are dependent on the management's ability to sustain its business profile with cautious management of market risks, increase in international outreach and improvement in governance structure.

About the Entity
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 the 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.

Mr. Mian Iftikhar Ahmed-a renowned businessman, along with his family owns the entire shareholding of the Company. He has served as the chairman of All Pakistan Tyres & Tubes Manufacturers Association. The overall control of the Company vests in three members’ board of directors. Two are executive directors, including the chairman, and one is a non-executive member of the sponsoring family. Mr. Mian Iftikhar Ahmed has taken up as CEO of the company after the retirement of Mr. Naveed A. Khawaja. He is supported by a team of qualified and experienced professionals.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.