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HomeEquityGul Ahmed's business in local markets flourishes - PACRA

Gul Ahmed’s business in local markets flourishes – PACRA

September 4, 2019 (MLN): Pakistan Credit Rating Agency (PACRA) has assigned initial entity rating of ‘A’ for long term to Gul Ahmed Textile Mills Limited, while the short term rating is ‘A1’. Meanwhile the outlook forecasted on this rating is ‘stable’.

As per an official press release by the agency, the rating reflects the strength of its business in the broader textile value-chain sponsor which allowed it to manage instability in textile business. The retail brand “Ideas” has come up with strong business dynamics in local market.

PACRA further apprised in this document that Gul Ahmed’s gross profit has been the resultant of sizeable revenue base, focusing on value added products, export market orientation and targeting established niche of quality- conscious institutional buyers.

Moreover, the currency devaluation has boded well for the Company’s export-oriented topline while recurrent BMR has improved efficiency, depicted in improved gross margins.

In the meantime, higher competition, hefty branding and marketing activities put a little pressure on net margins in local markets.

Its financial risk profile remains strong which has been characterized by robust cash flows, supporting improved working capital management and strong debt-servicing ability. While, leverages remain higher which have been financed through concessionary rates given by the SBP to shield the Company against recent interest rate hike.

Copyrights Mettis Link News

Posted on: 2019-09-04T11:25:00+05:00

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