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LAHORE: Panther Tyres Limited is set to launch its first privately placed short-term Sukuk valued at PKR 2 billion, according to a press release by The Pakistan Credit Rating Agency Limited. The instrument is secured by a ranking charge over the company’s current assets, ensuring a structured repayment plan through a Debt Payment Account.
The company will adhere to a staggered payment schedule, with the first installment of PKR 500 million due 21 days before maturity. Subsequent payments will follow at 15, 7, and 1 day before the maturity date, ensuring the full amount is available 2 days prior.
Panther Tyres Limited, engaged in manufacturing and selling tyres and tubes, serves a wide range of markets. Its portfolio includes products for two- and three-wheelers, agricultural vehicles, and commercial vehicles. The company has expanded its offerings to include heavy-duty Off-The-Road tyres and has ventured into auto parts and lubricants.
The assigned ratings reflect the company’s strong market position and its ability to maintain share in a highly competitive industry. This success is attributed to consistent product quality and a robust distribution network. The domestic tyre industry, dominated by the Replacement Market, faces challenges from raw material price volatility and competition from imported products.
As of FY25, Panther Tyres recorded a 10.3% growth, reaching PKR 32.5 billion. Despite facing margin pressures due to rising costs, revenue growth continued into 3MFY26, with improved margins.
The company’s financial risk profile is moderate, characterized by steady cash flows and a leveraged capital structure. Looking ahead, Panther Tyres aims to expand in agricultural and truck/bus tyre segments and enhance export growth by entering new international markets.
The ratings are contingent upon the company’s ability to sustain its market position in a competitive environment, improve profitability, and expand internationally. Maintaining prudent financial performance is deemed essential for future success.