Key Takeaways
- Ghandhara Tyre & Rubber Company's topline posted year-on-year rise from 2021 to 2024.
- The company registered net losses in 2023 and 2025, with margins deteriorating in the latter period.
- Shareholding is concentrated among associated companies and local general public.
Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) has reported mixed performance over the years 2021 to 2025, with significant fluctuations in its financial metrics. The company's total sales increased by 58.34 percent year-on-year in 2021, driven by a focus on replacement market sales and robust export demand.
In terms of profitability, GTYR saw a substantial boost in gross profit to Rs.13,923.52 million in 2021, marking a 100.61 percent increase from the previous year. This was attributed to better sales mix and improved export sales. However, the company faced challenges in subsequent years, registering net losses in both 2023 and 2025.
Margins experienced significant fluctuations during this period. Gross margins rebounded in 2021 after a downturn until that year, but saw a decline in 2022 before recovering slightly in 2024. In 2025, all margins deteriorated, indicating a challenging business environment for the company.
The shareholding pattern of GTYR is notable, with associated companies and undertakings holding 57.79 percent of shares. Local general public holds 26.13 percent, while banks, DFIs, and NBFIs collectively own 2.24 percent. Directors, CEO, and their immediate family members hold around 2.15 percent of the company’s shares.
Growth in sales was supported by various factors including increased focus on replacement market sales, reduced availability of smuggled tyres, higher export sales, and demand growth for farm and passenger car tyres. The company also expanded its workforce to 1133 employees in 2021 to meet the surge in production and sales.
Despite these efforts, GTYR faced challenges such as elevated distribution expenses, which surged by 43.72 percent due to increased payroll costs and higher freight & insurance charges. Administrative expenses also rose by 14.34 percent, primarily driven by higher legal and professional fees.
Other income strengthened significantly in 2021, with a 166.64 percent increase attributed to higher scrap sales, exchange gains, re-measurement gains on GIDC liability, and gain from the termination of lease. Conversely, other expenses escalated by 276.80 percent due to increased profit-related provisioning and generous donations.
The company's operating profit surged by 219.85 percent in 2021, reflecting a strong performance despite the aforementioned challenges. However, this growth was not sustained, leading to net losses in subsequent years.
