AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: LOADS Ltd. presented its FY25 financial outcomes and future strategies at a corporate briefing, revealing a 34% increase in revenue, reaching PkR6.0 billion, up from PkR4.5 billion in FY24. The surge was attributed to a rise in volumetric sales driven by a recovery in the auto industry.
The company’s earnings declined to PkR495 million in FY25 from PkR827 million in FY24, influenced by new pricing negotiations with original equipment manufacturers (OEMs). Mufflers constituted the majority of sales at 61%, while sheet metal and radiators accounted for 35% and 4% respectively.
Suzuki emerged as the leading contributor to sales, representing 55%, followed by Toyota at 24% and Honda at 14%. The aftermarket segment contributed 2%, with Others and Yamaha at 2.8% and 0.8% respectively.
Looking ahead, LOADS’ management anticipates a 20-25% increase in automobile sales for FY26. To accommodate this anticipated demand, the company plans to raise PkR1.5 billion through a rights issue, specifically targeting additional working capital needs.
Negotiations with OEMs are ongoing, and the company expects localization to rise, driven by duty concessions under the AIDEP, which expires in June 2026. This shift is likely to broaden LOADS’ client base.
Financial constraints previously limited LOADS’ focus on the aftermarket segment, but future plans indicate a shift towards this area. Additionally, the company is considering manufacturing aluminum radiators for both the aftermarket and OEMs.
The commissioning of LOADS’ Hi-Tech alloy-wheel plant remains incomplete, with an additional PkR2-3 billion investment required. The company is exploring options to either sell the unit or engage in a potential joint venture.
The company does not currently fall under formal coverage by the releasing entity.