Lahore September 5 2023: Panther Tyres Ltd (PTL) exports increased by 67.9 percent in fiscal year 2023 due to addition of new countries and products in the existing portfolio.
Despite the prevailing economic headwinds, the Company has been able to achieve annual net revenue of PKR 21,441 million in fiscal year 2023, which represents a growth of 5 percent over the last year. Although, the sales to OEMs during the year dropped significantly yet the Company managed to off-set the deficit through local and export replacement markets. The exports of the Company increased to PKR 3,119 million from PKR 1,857 as reported in last year due to addition of new countries and that of new products in the export portfolio.
During the year the Company successfully managed to strengthen its gross margin back to 14.5percent as against 11 percent reported in last year due to some strategic actions taken by the management. The management not only passed on the impact of higher costs to the end consumers but also implemented rigorous cost control actions to enhance operational efficiencies.
Selling and distribution expenses have increased from 687 million to 932 million due to additional spending on marketing & branding which will support the Company achieve its ambitious plans in future.
The financial charges for the fiscal year experienced a significant surge, rising from PKR 650 million to PKR 1,049 million, mainly resulting from increase in discount rate from 15 percent to 22 percent. However, in order to arrest the escalating finance cost, the company implemented financial discipline all across its operations and successfully achieved efficiency in financial operations. Consequently, requirements of the short term loans reduced from PKR 7,215 million to PKR 5,502 million. This efficient utilization of working capital limits will also help company to keep tight control over finance cost in next financial year as well
Inspite of all odds, the Company successfully managed to post net profit of PKR 432.79 million as compared to PKR 457.46 million reported in last year.
“Due to the prevailing tough economic situation coupled with fragile political situation of Pakistan, the businesses in current financial year are likely to face headwinds. However, the global recession have led to softening of global commodity prices and downward trend in the prices of oil, natural rubber, butyl, carbon and many other raw materials is also being witnessed. This will help the Company to partially off-set adverse impact of rupee dollar parity” says Chief Executive Officer Mian Faisal Iftikhar.
“However, higher interest rates and slow demand are likely to exist due to higher levels of inflation. The management of the company is cognizant with these emerging challenges and devising the strategies to cope with them successfully” iftikhar added.
