Panther Tyres Limited (hereinafter referred to as ‘Panther’ or ‘the Company’) is a public listed company incorporated under the Companies Ordinance, 1984 (now “Companies Act, 2017”). The Company is listed on PSX with a free float of ~25.00% at end March'25.

Mian Tyre & Rubber Company Limited was established in 1983 as a private limited company and was later on converted into a public limited company with effect from Oct 2003. The Company changed its name to Panther Tyres Limited in Oct-2011. During Feb-21, the Company got listed on PSX. With the operating history of ~40 years, the Company has emerged as one of the top players in tyre and tube market of Pakistan.

The corporate office of the Company is on Jail Road, Lahore. Panther’s products are divided into three divisions i.e., i) Two Wheel, ii) Three Wheel and, iii) Four Wheel. The Company is one of the major producers of motorcycle & tractor tyres and tubes in Pakistan. It is also engaged in the manufacturing and marketing of tyres and tubes for rickshaws, forklifts, LTV, scooters, HTV and OTR. Later, the Company also entered into the manufacturing of Truck Bus Bias Tyre (TBB Tyre). During Apr-18, the Company ventured into thetrading business of automobile lubricants and motorcycle spare parts. Manufacturing plant of the Company is located at 29.5KM Sheikhupura.

The sponsoring family owns the major shareholding of the Company. Mian Iftikhar Ahmed is the major shareholder, he possesses ~47.86% shares of the Company, his wife, Ms. Samina Iftikhar and son Mian Faisal Iftikhar hold shareholding of ~10.34% and 15.83%, respectively.

During the year ending June 30, 2021, the Company was listed on the Pakistan Stock Exchange and there has been some change in the shareholding structure of the Company. However, the major shareholding of the Company remains with the sponsoring family.

Mian Iftikhar Ahmed is the founder of the company. He is the pioneer of Bias tyre and Butyl tube manufacturing in Pakistan. He is recognized as one of the leaders and mentors of the local tyre industry. Under his leadership, the Company achieved many milestones and became a prominent player in the industry.

Panther is the main business of the sponsor's family. They don't have any strategic stake in any other business. Therefore, the financial strength of the sponsors is deemed adequate.

The overall control of the Company vests in 7-members Board of Directors. Two are executive directors, including the CEO, two are non-executive members and three directors are independent. The roles of Chairman and CEO have been segregated which has improved the governance structure of the Company.

All members of the Board of Directors (BoD) of Panther Tyres Limited are seasoned professionals with extensive industry experience and long-standing associations with the Company. The Chairman, Mr. Mian Iftikhar Ahmed (Non-Executive Director), brings over four decades of leadership and is widely regarded as a pioneer in Pakistan’s tyre manufacturing sector. The Board also includes Mr. Mian Faisal Iftikhar, Chief Executive Officer and Executive Director, and Ms. Ayesha Iftikhar (Executive Director), both of whom bring hands-on expertise in operations, strategy, and marketing. The independent directors bring valuable cross-sectoral expertise and governance insight to the Board, reflecting backgrounds in industry, public service, and diplomacy. Among the non-executive directors, the Board benefits from technical experience relevant to the company’s core operations, contributing to more informed and balanced decision-making.

The board of PTL has established two key committees: the Audit Committee and the HR & Remuneration Committee. Each of these is chaired by an independent director, ensuring impartial oversight and robust governance. During the year, multiple board meetings were held. Attendance of board members in these meetings remained strong and minutes are documented adequately.

An internal audit department reporting directly to the board is in place. The external auditor of the Company is one of the big 4 audit firms, KPMG Taseer Hadi & Co. Chartered Accountants. The auditors issued an unqualified audit opinion on the annual financial statements of the Company for the period ending June 30, 2024.

Panther has a lean organisational structure with an experienced management team; and a balanced mix of professionals from the FMCG industry (including Chartered Accountants and Engineers). The majority of the senior management has been associated with the company for a long time.

The management team at Panther Tyres Limited comprises experienced and qualified professionals with long-standing affiliations with the Company and deep operational expertise. Mr. Mian Faisal Iftikhar, the Chief Executive Officer (CEO), brings over 20 years of leadership in the tyre industry, having contributed significantly to the Company’s strategic growth and operational expansion. Mr. Ghulam Abbas, the Chief Financial Officer (CFO), is a Fellow Chartered Accountant with over 17 years of experience, notably leading the Company's successful IPO and driving financial planning and governance. The management is further supported by a team of functional heads across operations, marketing, sales, and HR—each bringing industry-relevant experience and a commitment to performance excellence—ensuring the effective execution of the Company’s strategic objectives.

The Company has implemented a structured management framework with defined reporting lines, supported by a management committee comprising departmental chiefs and directors. Meetings are held as required to deliberate on key strategic and operational matters. Monthly performance reports are prepared and circulated among relevant department heads to facilitate informed decision-making. However, the documentation of meeting minutes remains an area for improvement to further strengthen internal oversight and continuity.

Panther is currently equipped with the latest SAP solution package i.e., SAP ECC. 6.0. It was successfully implemented across the company in June-13 by Abacus Consulting. The SAP system is a business software package designed to integrate all areas of the business.

The Company has an in-house Internal Audit function, with the department head reporting directly to the Audit Committee, ensuring independence and oversight. The corporate structure is organized into distinct departments, each operating under a well-defined internal control framework to support the achievement of strategic objectives and ensure reliable financial reporting. Customized management portals have been deployed across functions to enhance operational efficiency, while established back-up protocols and disaster recovery plans help safeguard business continuity and system resilience.

Pakistan’s tyre industry comprises three primary segments: (i) 2- and 3-wheeler tyres, (ii) tyres for cars and LCVs, and (iii) tyres for trucks, buses, and tractors, with demand driven by both new vehicle sales and the replacement market. The sector is heavily reliant on imported raw materials, exposing it to global price and exchange rate volatility, while the OEM segment faces competitive pressure from imported and grey-channel tyres. The replacement market remains dominant, accounting for nearly 80% of total demand. As of early FY25, improved macroeconomic conditions—marked by lower inflation, declining interest rates, and exchange rate stability—have supported a modest recovery in consumer confidence. According to PAMA, motorcycle and three-wheeler sales rose by ~30% year-on-year in 10MFY25 to 1.22 million units, while truck and bus sales nearly doubled to 3,885 units. However, tractor sales declined by 36%, reflecting ongoing stress in the agriculture sector.

The Company has evolved to become one of the largest and leading suppliers and manufacturers of Tyres and Tubes in Pakistan. The Company is also honoured suppliers of Suzuki, Honda and Yamaha for the past 30 years. The Company has achieved a milestone in captivating a vast extent of customers from Asian, Middle East, African & European countries. Moreover, the Company is the second only manufacturer of tractor tyres and TBB tyres in Pakistan and first only manufacturer of off-the-road (OTR) tyres.

The automobile and allied sector has shown signs of recovery, contributing to a positive improvement in overall demand dynamics. Against this backdrop, Panther Tyres recorded a moderate revenue growth of ~5.3% in 9MFY25, with net sales reaching PKR 23,305 million (FY24: approx. PKR 29,523 million). In FY24, the Company posted a strong 38.2% YoY growth, with topline reported at PKR 29,523 million (FY23: PKR 21,363 million). This growth was supported by increased traction in the 2- and 3-wheeler as well as tractor tyre segments. The revenue mix remains well-diversified across both OEMs and the replacement market, contributing to revenue stability.

Amid signs of recovery in the automobile and allied sector, the Company's margins have remained relatively stable, though slightly impacted by cost-side pressures. During 9MFY25, the gross margin stood at 12.3%, compared to 14.6% in FY24 and 14.5% in FY23, reflecting the effects of higher input and energy costs. Operating margin came in at 7.0% (FY24: 8.5%), while net profit margin was recorded at 1.4% (FY24: 1.6%; FY23: 2.0%). While margins have softened in the current period, the improving demand outlook and the Company’s pricing strategy may provide support for margin recovery going forward.

The Company maintains a fairly diversified revenue base, with a greater share derived from the replacement market. While OEM demand has declined amid economic headwinds, the replacement market continues to demonstrate relative stability. However, intensifying competition in the replacement segment remains a key challenge. Additionally, volatility in raw material prices and exchange rates will continue to be critical determinants of gross margin performance.

To fund its working capital cycle, the Company relies on a mix of short-term borrowings and internal cash flows. As of March’25, short-term borrowings stood at PKR 7,810 million, slightly below the FY24 figure of PKR 8,074 million, Gross working capital days during 9MFY25 were recorded at 111 days, compared to 107 days in FY24 whereas net working capital days increased to 93 days (FY24: 87 days).

During 9MFY25, the Company generated free cash flow from operations (FCFO) of PKR 471 million, significantly down from PKR 1,136 million in FY24. As a result, interest coverage weakened to 0.5x (FY24: 1.7x), and the core coverage ratio also dropped to 0.3x (FY24: 0.8x). This decline reflects a notable strain on cash flow-based coverages, underscoring the importance of improved operational cash generation.

Panther continues to operate with a leveraged capital structure. Total borrowings increased to PKR 11,583 million as of March'25 (FY24: PKR 10,705 million), with short-term borrowings accounting for 63.2% of the total debt. The increasing debt load, combined with reduced internal cash generation, highlights the need for cautious financial planning to ensure balance sheet resilience.