Int’l Textile signifies consistency in gross margins owing to favorable cotton procurement strategy: VIS

News Image

By MG News | March 05, 2019 at 10:51 AM GMT+05:00

0:00

March 05, 2019 (MLN): VIS Credit Rating Company Limited has assigned initial entity ratings of ‘A/A-2’ (Single A/A-Two) to International Textile Limited (ITL). Outlook on the assigned ratings is ‘Stable’.

The long term rating of ‘A’ signifies good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy.

The short term rating of ‘A-2’ signifies good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good. Risk factors are small.

As per the rating agency, the assigned ratings take into sound internal control framework and satisfactory financial profile as indicated by consistency in gross margins, low leverage indicators and adequate debt repayment capacity in view of sizeable cash flows vis-à-vis outstanding obligations.  

Despite consistent sales, gross margins have improved due to favorable cotton procurement strategy. Improvement in gross margins coupled with exchange gains has translated into higher net margins on a timeline basis.

Sustainability in margins and profitability in the given rating horizon would be an important rating determinant going forward.

Cash flows of the company have varied in line with the profitability of the company.

Overall liquidity profile of the company is considered adequate in view of sufficient cash flows in relation to outstanding obligations, satisfactory debt servicing ability and aging of trade debts which remain within manageable levels.

Equity base of the company has grown on timeline basis due to profit retention.

The company has acquired short term finance for working capital requirements and no long term debt is availed by the company.

With increase in total debt levels of the company, leverage indicators have trended upwards but continue to remain at manageable levels. Maintaining leverage indictors in line with projections is considered important from rating perspective.

Copyright Mettis Link News

 

Related News

Name Price/Vol %Chg/NChg
KSE100 128,199.43
336.91M
2.05%
2572.11
ALLSHR 79,787.62
1,023.63M
1.53%
1202.91
KSE30 39,105.00
121.90M
2.49%
951.21
KMI30 186,915.61
131.16M
1.10%
2029.11
KMIALLSHR 54,201.88
553.60M
0.81%
438.07
BKTi 33,476.68
51.49M
4.87%
1555.00
OGTi 27,962.58
9.77M
0.68%
188.60
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 106,040.00 106,200.00
105,440.00
290.00
0.27%
BRENT CRUDE 67.13 67.29
67.05
0.02
0.03%
RICHARDS BAY COAL MONTHLY 97.50 97.50
97.50
0.70
0.72%
ROTTERDAM COAL MONTHLY 103.80 103.80
103.80
-3.45
-3.22%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 65.42 65.65
65.34
-0.03
-0.05%
SUGAR #11 WORLD 15.70 16.21
15.55
-0.50
-3.09%

Chart of the Day


Latest News
July 02, 2025 at 06:01 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market


July 01, 2025 at 10:04 PM GMT+05:00

Pakistan’s trade deficit improves by over 9% in June


July 01, 2025 at 05:24 PM GMT+05:00

Gold price in Pakistan rises Rs6,600 per tola



Top 5 things to watch in this week

Pakistan Stock Movers
Name Last Chg/%Chg
Name Last Chg/%Chg