PACRA Maintains the Entity Ratings of Panther Tyres Limited

Panther Tyres Limited (‘PTL’ or ‘the Company’) is engaged in the manufacturing and sale of a wide range of bias technology tyres and tubes, serving diverse market segments such as two- and three-wheelers, agricultural vehicles (tractors), light commercial vehicles (LCVs), trucks, and buses. The Company has further diversified its product portfolio by manufacturing the largest and heaviest tyres in the Off-The-Road (OTR) category. In addition to broadening its revenue base, PTL has also ventured into the marketing and sale of auto parts and lubricants. The ratings reflect the Company’s prominent position and brand equity to serve OEMs and the replacement market. PTL has maintained its market share in the highly price-sensitive and volume-driven different tyre segments. The domestic tyre industry is primarily divided into two segments: Original Equipment Manufacturers (OEM) and the Replacement Market (RM), with the RM segment commanding a dominant share of ~80%. The industry's dependence on imported raw materials exposes it to volatility in global commodity prices and exchange rate fluctuations. Moreover, the four-wheeler segment faces heightened competitive pressure from imported products, including those entering through grey channels. The onset of FY25 marked a strengthening of Pakistan’s macroeconomic conditions, supported by a significant decline in inflation and interest rates, along with improved exchange rate stability. These factors collectively led to a recovery in consumer confidence. According to the Pakistan Automotive Manufacturers Association (PAMA), motorcycle and three-wheeler sales grew by ~30% during 10MFY25, reaching around 1.22 million units compared to 0.94 million units in the same period last year (SPLY). The truck and bus segment also experienced notable growth, with sales rising to 3,885 units from 2,097 units in the SPLY. In contrast, farm tractor sales—which are closely tied to agricultural activity—declined sharply by 36%, falling to 24,832 units. During 9MFY24, the Company’s topline registered a modest year-on-year growth of approximately 5.3% and recorded at ~PKR 23.3bln. However, gross margin experienced some compression due to rising raw material and energy costs, which could not be fully passed on to consumers. The Company’s financial risk profile is characterized by moderate coverage ratios, cash flows, and a stretched working capital cycle. The capital structure remains leveraged, with borrowings primarily consisting of long-term and short-term facilities to support capital expenditures and working capital requirements. Going forward, the Company aims to expand its market share in the agricultural and truck/bus bias tyre segments by leveraging its existing production capacities. It is also focusing on exports and continuously exploring new opportunities in international markets.
The ratings are dependent on the Company's ability to retain its position amidst a competitive business environment, improvement in the profitability matrix, and increase in international outreach. Prudent financial performance like healthy coverages and effective liquidity profile shall remain vital for the business.

About the Entity
Panther Tyres Limited is a listed entity, incorporated in 1983. The Company is primarily engaged in the production of bias tyres & tubes for vehicles and the trading business of automobile lubricants & motorcycle spare parts. Panther is the pioneer in the motorcycle, TBB, & OTR tyre manufacturing industry of Pakistan. Mian Iftikhar Ahmed, a renowned businessman, with his family, owns a majority stake in the Company. The overall control of the Company vests in the 7-member board of directors. Mian Faisal Iftikhar (son of the Chairman) is the CEO and is supported by a team of qualified professionals