Shams ul Nisa

Panther Tyres Limited (PTL) is intensifying its export-driven approach to ensure sustained profitability amid domestic market challenges, reports WealthPK.

Therefore, the company plans to capitalize on its reputation for quality and operational efficiency to unlock new revenue opportunities and strengthen its global presence by targeting growth in international markets. In the 1HFY25, PTL recorded a notable 9% increase in sales, rising to Rs15.7 billion from Rs14.5 billion during the same period last year.

Despite continued pressure on domestic sales to Original Equipment Manufacturers (OEMs) due to economic headwinds, the company offset the decline through strong export performance and steady growth in the replacement market. Moreover, the company has identified exports as a primary engine for growth, strategically targeting markets in Africa, the Middle East, and South Asia to broaden its revenue base and lessen reliance on domestic market fluctuations.

Despite a rise in sales, PTL faced headwinds from escalating raw material costs in global markets, leading to a dip in gross margins to 12.16%, compared to 15.57% in the same period last year. However, a gradual recovery was seen in the second quarter, with margins improving to 12.84% from 11.52% in the first quarter.

The company reported an operating profit of Rs1.15 billion, slightly below last year’s Rs1.26 billion, as increased financial charges stemming from higher working capital usage and elevated interest rates put pressure on bottom-line performance. As a result, net profit declined to Rs184 million from Rs431 million a year earlier.

PTL secured long-term financing of Rs1.6 billion during the period under review to support its ongoing capital expansion and reinforce its financial foundation. During the review period, PTL saw strong growth in the replacement market as reduced OEM vehicle production led consumers to seek aftermarket options. By providing reliable and affordable tyres tailored to local needs, PTL boosted revenue and reinforced its reputation among individual buyers and small businesses.

Thus, amid signs of economic recovery in Pakistan, PTL remains optimistic about its future growth. With GDP projected to grow by 3.4% in FY2025 and inflation easing, the company is focusing on restoring margins through price adjustments, operational efficiency, and better working capital management. It is also expanding its export reach by strengthening international partnerships and exploring new markets.

PTL is complementing its export strategy with a strong focus on sustainability and innovation. The company is investing in advanced technologies to reduce waste and improve energy efficiency, while exploring eco-friendly tyre solutions.  With its continued focus on innovation and adaptability, PTL is positioning itself to lead the tyre manufacturing sector in Pakistan while expanding its influence in global markets.

Credit: INP-WealthPk