PACRA Maintains the Entity Ratings of Loads Limited

Loads Limited ratings reflect the Company’s strong and well-established presence in Pakistan’s automotive parts industry. The Company is engaged in the manufacturing of exhaust systems, radiators, and value-added sheet metal components, and primarily caters to leading original equipment manufacturers across the passenger, commercial, and agricultural vehicle segments. Its business profile is underpinned by decades of operating history, in-house die designing and engineering capabilities, established manufacturing processes, and a diversified product portfolio, which collectively support stable customer relationships and recurring demand. The auto parts manufacturing industry in Pakistan remains fairly fragmented, with demand driven mainly by the replacement market and OEM requirements. The sector faces intense competition from imported products and remains highly sensitive to exchange rate movements and interest rate fluctuations due to heavy reliance on imported raw materials, which account for ~80% of the cost base. Moreover, trends in the local automobile industry are closely linked with broader macroeconomic indicators. During FY25, the automobile sector posted a meaningful recovery, supported by stabilization in the foreign exchange market and a significant reduction in policy rates and inflation, which collectively improved consumer confidence. This positive momentum is expected to continue in the near term. According to the latest Pakistan Automotive Manufacturers Association statistics, the passenger car segment recorded healthy growth of ~43% during the first four months of FY26. Similarly, the LCVs, vans, and jeeps segment posted strong growth of ~61.5%, while truck and bus sales increased to 3,160 units compared to 1,605 units in the same period last year. The two and three-wheeler segment also registered notable growth of ~32%. In line with industry trends, the Company recorded a topline recovery of ~34% during FY25, with revenues increasing to ~PKR 6,033 million from ~PKR 4,490 million in FY24. The improvement was primarily driven by higher sales volumes, while an improved pricing strategy supported better gross and operating margins. Revenue composition remains concentrated in two key product lines, with exhaust systems contributing ~61% and sheet metal components accounting for ~35% of total revenues. The ratings also draw comfort from the Company’s association with Treet Corporation. The governance framework remains strong, supported by an experienced board of directors. Operational execution benefits from a professional management team, while sound internal control systems are implemented across the organization. The financial risk profile is characterized by adequate cashflows generation, coverage metrics, and a manageable working capital cycle. The capital structure remains moderately leveraged and is largely comprised of short-term borrowings utilized for working capital management. Going forward, management intends to expand the export portfolio to diversify revenue streams. The Hi-Tech Alloy Wheels Limited plant remains non-operational, and management is actively pursuing its disposal, which is expected to provide additional liquidity upon sale. Alternatively, management is exploring the option of making the plant operational through a joint venture with a technical partner. Once commissioned, the facility is expected to provide incremental benefits through import substitution and enhanced value addition.
The ratings are dependent on the Company’s ability to improve its business risk vis-à-vis financial risk profile along with a strategy revamp to sustain the margins. Cautious management strategies amidst a challenging industry environment are pertinent. Moreover, prudent management of financial affairs remains important.

About the Entity
Loads Limited ('Loads' or 'the Company') was established in 1979 as a private limited company and was listed on Pakistan Stock Exchange in 2016. The Company is mainly engaged in the production of auto parts namely: exhaust systems, metal sheet components and radiators. Major stake of ~37.7% is held by Mr. Syed Shahid Ali. Mr. Syed Shahid Ali chairs the BoD; while, Mr. M. Mohtashim Aftab heads the Company as the CEO. They are assisted by team of experienced professionals.