Lahore, December 04, 2017 (PPI-OT):Ratings take strength from strong industry positioning of Panther in its respective niches. The company has formidable market share in tyre and tube industry, especially in two wheel segment, whereas three wheel and four wheel segments are on the growth trajectory. The sponsors embarked upon a strategy to build a strong management team with a wholesome mandate: roles are clearly demarcated with high degree of delegation.
The margins are sanguine though slightly constrained during FY17 due to build-up of significant inventory levels, however, the improving trend is visible in 1QFY18. Comfort is drawn from strong coverages coupled with adequate capital structure. Going forward, strong growth in auto sector amidst improving macro-economic conditions is expected to result in robust consumer demand. Panther is poised to take full advantage.
The ratings are dependent on the management’s ability to sustain its business profile while benefiting from positive demand fundamentals; financial discipline is crucial. Moreover, strengthening of governance framework is pivotal for any growing business concern.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425