June 24, 2021 (MLN): The Pakistan Credit Rating Agency Limited (PACRA) has assigned Avanceon Limited an initial entity rating in its latest report released on June 11, 2021.
Avanceon Limited has received an A-in long term, A2 in short term, and a ‘Stable’ outlook from PACRA.
The company provides industrial automation, process control, and systems integration solutions, to trade in products of automation and control equipment and provide related technical services.
Here are a few salient excerpts from the PACRA report,
During FY21, Avanceon generated revenue of PKR 6.4bln at the end of Dec-20 (CY19: PKR 4.9bln) on a consolidated basis. In geographical distribution, a major portion of the revenue is generated in KSA followed by Pakistan.
Avanceon has less dependence on borrowings which provides comfort to financial risk.
The company has maintained consistent operating profit margins which reflects the efficient translation of top-line into higher net profitability. The rating draws comfort as the major clientele is concentrated in oil and gas sectors; the rest are also multinational corporates.