Shams ul Nisa

Loads Limited has reported a sharp rise in profits, driven by strong demand from Original Equipment Manufacturers (OEMs) amid a recovering automotive sector, reports WealthPk. Pakistan’s automotive sector saw strong recovery, with sales of car and light commercial vehicles up 46% and heavy vehicle rising 80%.

Despite a 35% drop in tractor sales, overall momentum remained positive. Loads Limited capitalized on this growth, with sales of exhaust systems up 45%, sheet metal components 31%, and radiators soaring 269%. The company’s expansion supports local manufacturing, job creation, and economic development.

Therefore, Loads Limited is focusing on innovation and strategic expansion to sustain its growth momentum. The company aims to enhance quality, productivity, and technology to remain a leader in the automotive components sector.

With the improvement in Pakistan’s economy, supported by the successful IMF program and structural reforms, the rupee has stabilized, inflation has eased, and interest rates have declined. These developments have strengthened business activity and increased consumer confidence in the country.

The company’s strategy includes expanding production capacity to meet growing OEM demand, diversifying its product range with advanced exhaust systems and next-generation radiators for hybrid and electric vehicles, and adopting modern manufacturing technologies to improve efficiency and competitiveness.

Loads Limited posted a 43% revenue increase to Rs4.35 billion for the nine months ended March 2025, fueled by increased orders from major OEMs including Suzuki, Toyota, and Honda. The net profit rise to Rs286 million despite an impairment charge. EPS improved to Rs1.14, reflecting strong OEM demand and operational strength.

Additionally, PACRA upgraded Loads Limited’s credit outlook to “stable,” citing improved financial and operational performance. Although the company maintains strong performance, it remains cautious of industry challenges and has taken a prudent step by recognizing impairment charges for delayed projects.

Loads also advocates for policy support and infrastructure development to sustain industry growth. To build on its momentum, the company aims to support national fiscal reforms, invest in workforce and technology, strengthen OEM partnerships, and explore export opportunities. 

Loads Limited’s sharp rise in profitability, driven by strong OEM demand and operational efficiency, signals a key milestone for both the company and Pakistan’s automotive sector. With a strategic focus on innovation, capacity expansion, and sustainability, Loads is set to play a vital role in supporting the country’s economic recovery and long-term development. The company’s progress reflects Pakistan’s broader goals of resilience, innovation, and growth.

Credit: INP-WealthPk