PACRA maintains ratings of Nimir Resins Ltd with stable outlook

July 15, 2025 (MLN): The Pakistan Credit Rating Agency Ltd (PACRA) has maintained the entity ratings of Nimir Resins Ltd (PSX: NRL) at “A-” for the long term and “A2” for the short term, with a stable outlook, according to the latest press release issued by the rating agency.

NRL operates across six specialised business lines: textile auxiliaries and chemicals, coating and emulsion, unsaturated polyester resins, pulp and paper chemicals, adhesives and solvents and monomers.

These segments collectively cater to diverse industrial clients, including several well-established entities across multiple sectors — reinforcing the company’s credibility and sustained service quality.

As part of the broader Nimir Group, the company leverages group-wide operational synergies and resource integration to support business efficiencies.

 This affiliation also bolsters its ability to navigate supply-side volatility and cost fluctuations, which are common in the highly competitive resins industry.

During the 9MFY25 period, NRL posted a topline growth of about 9% year-on-year, reaching approximately Rs7.03 billion (FY24: Rs8.59bn), driven primarily by an around 11% increase in sales volumes from the coating, emulsion and polyester (CEP) segment.

 The volume uptick reflects steady demand recovery in industrial sectors, aided by improving macroeconomic indicators, exchange rate stabilisation and gradual easing of inflation and policy rates.

Despite revenue growth, the company’s gross and operating margins experienced minor dilution, largely attributable to rising operational costs and external inflationary pressures.

 Nevertheless, NRL continued to benefit from a modern manufacturing facility and an efficient internal control framework, which helped sustain operational stability.

The company’s financial risk profile remains moderate, marked by reasonable coverage ratios, healthy but slightly constrained cash flows and a stretched working capital cycle — a trend consistent with industry norms. 

The capital structure is moderately leveraged, with the bulk of borrowings used to fund short-term working capital needs.

A significant development during the period was the induction of Rudolf Pakistan (Pvt) Ltd as a strategic shareholder with a 40% equity stake. 

This partnership is expected to reinforce NRL’s governance ecosystem and unlock new operational efficiencies through technical collaboration and strategic oversight.

Looking ahead, the company’s ability to maintain topline momentum, manage liquidity prudently and successfully implement its corporatisation roadmap will be key determinants of its future rating trajectory.

 The stable outlook reflects confidence in NRL’s capacity to navigate industry challenges while pursuing sustainable growth.

Nimir Resins was incorporated in 1964 as a private limited company and later listed in 1991. 

The company merged with Descon Chemicals (Pvt) Ltd in 2010 and was reacquired by the Nimir Group in 2016. 

Headquartered in Lahore with its registered office in Sheikhupura, NRL is led by CEO Zafar Mehmood, who brings over three decades of industry experience. 

The board of directors comprises eight members and is actively involved in overseeing the company’s strategic direction.

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