January 30, 2024 (MLN): Pakistan Credit Rating Agency Limited (PACRA) has maintained ratings of Ghani Chemical Industries Limited (PSX: GCIL)'s debt instrument (Sukuk) at 'A' for the long term with a stable outlook forecast, latest press release issued by PACRA showed.
The rating reflects the prominent position of GCIL in the manufacturing, sale, and trading of medical & industrial gases and chemicals.
The industry largely possesses an oligopolistic structure, benefiting the players, which allows GCIL to consistently deliver high-quality products and services.
These gases find diverse applications across various industries encompassing medical, chemical processes, metal fabrication, food processing, oil and gas exploration, and many more.
As of now, the product portfolio has stabilized along the demand yield curve, indicating a more balanced and consistent state in the industry.
In line with its commitment to expanding and strengthening its operations, the board of directors of GCIL has merged G3 Technologies Limited with/ GCIL and successfully achieved its objective of getting listed on the Pakistan Stock Exchange (PSX).
During 3MFY24, the company’s topline clocked in at Rs1.213 billion reflecting a growth of 12% on a QoQ basis (FY23: Rs4.32bn; FY22: Rs4.214bn).
Moreover, the company’s margins improved at all levels. During 3MFY24 the net profit of the company was recorded at Rs226 million (FY23: Rs508mn; FY22: Rs870m).
As per the management, all four plants of Ghani Chemical Industries Limited are currently operational and overall capacity utilization stood at 65%.
The company has already commenced the construction work for the setup of its 5th Air Separation Unit (ASU) Plant of 275 TPD capacity for medical and industrial gases in KPK.
The ratings are dependent on the company's ability to effectively utilize enhanced capacities. At the same time, management of financial risk, particularly debt coverages, remains important, wherein any further deterioration would have negative implications for the ratings.
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Posted on: 2024-01-30T13:46:09+05:00
