Panther Tyres Limited recorded earnings per share of PKR 2.57 in FY25, as compared to PKR 2.77 in FY24. The company recorded net sales of PKR 32.6 Bn, in line with PKR 29.5 Bn in FY24. During FY25, the company’s gross margin contracted to 13%, compared to 15% in FY24. Along with this, it saw its gross profit decrease 1% from PKR 4.31 Bn in FY24 to PKR 4.26 Bn in FY25. PTL posted profit after tax of PKR 432 Mn in FY25, compared to PKR 466 Mn in FY24.
The company management highlighted that over the past their margins have been around the 14-15% mark whereas deviations to the downside have been rare. In the recent past, rubber prices had experienced a spike which caused a dip below 14%. Now that rubber prices have fallen, it apprised that it expects margins to return to historical levels of 14-15% and remain sustainable. With regards to the closure of trade with Afghanistan the management revealed that about 2-4% of their sales are to Afghanistan which have been impacted.
On the other hand, the closure of Afghan transit trade has reduced the volume of smuggled imports providing growth in local market sales. The company is currently operating at about 80% utilization. The management noted that its recent expansion was heavier on intermediate and back-end processes providing ample runway for the next 5-10 years. The company’s back-end processes are operating at a 40% utilization.
PTL has also taken steps to diversify its raw material sources to be able to procure good quality at a good price. Management revealed that Pakistan’s tyre market has a growth rate of about 10% while the company’s topline has been growing at 15% due to export sales growth. It highlighted that while margins are initially near 5-6% when trying to penetrate a new market after 3-4 years it rises to about 10%.
Important Disclosures
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