PACRA Assigns Preliminary Ratings to Loads Limited - ICP-1 - TBI - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- September 29, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

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The ratings reflect the niche industry positioning of Loads Limited ("Loads" or the "Company") in the auto parts industry. With a presence of up to four decades in the automotive industry, the Company has established a considerable forte in the domestic market along with a committed client base. The Company employs its specific business model i.e., working through subsidiaries catering to the current product suite. Loads Limited has an admirable market share (~95%) in the sales of the exhaust system, strength in this segment emanates from exclusive agreements signed with the leading OEMs in the country and technical collaborations with international players.

Loads Limited is gearing towards further diversification and is in the process of completing an Alloy Wheels plant under Hi-Tech Alloy Wheels Limited. The plant completion is advancing however, certain challenges like rupee devaluation have interrupted the momentum but management is committed to resolving all issues including an arrangement of the remaining portion of requisite funding.

On the financial profile side, the Company is managing its leveraging on average within ~42% since Jun'19. However, in order to meet the working capital requirements, the Company...