PACRA maintains entity ratings of Air Link Communication

News Image

By MG News | November 22, 2022 at 11:46 AM GMT+05:00

0:00

November 22, 2022 (MLN): Pakistan Credit Rating Company (PACRA), has maintained entity ratings of Air Link Communication Limited (AIRLINK) at “A” for the long term and “A1” for the short term with a stable outlook forecast.

As per the rating agency, Airlink’s sustainable business fundamentals are underpinned by its solid market position.

The company is the official partner of multiple leading global brands to ensure diversified earnings from its core business line, it added.

Pakistan’s telecom industry is one of the fastest-growing segments of the economy. With the successful execution of DIRBS, the local assembly of the industry has evolved from its infancy to the well-growing stage.

With the successful execution of DIRBS, the local assembly industry has evolved from infancy to a well-growing stage. The government of Pakistan introduced a comprehensive Mobile Manufacturing Policy to attract manufacturers to Pakistan and establish their plants, the report added.

Moreover, PTA has issued MDM authorizations to 30+ foreign & local companies to create more jobs in the technology sector and enable consumers to buy locally. During the first nine months (Jan-Sep) of 2022, the local plants manufactured/assembled ~16.7mln handsets as compared to ~1.24mln commercially imported ones.

Following, the Company captures a market share of around ~22% in mobile phone distribution. On an accumulated basis, the top line of the Company continued to witness reasonable growth on a Year-on-Year basis primarily on the back of higher prices, followed by more volume.

During FY22, Airlink joined hands with Xiaomi, a global electronics & smartphone brand, to manufacture/assemble Xiaomi mobile phones in Pakistan through its wholly owned subsidiary “Select Technologies (Pvt) Limited” for which the commercial production was initiated in Mar-22.

Further, the Company retained its profitability matrix despite tough macroeconomic conditions and the high cost of doing business. Funds received through IPO ramped up Company’s equity base; keeping the capital structure moderately leveraged mainly comprised of STBs.

The ratings are dependent on the Company’s ability to sustain its relative position amidst changing industry environment. As the business grows, prudent financial discipline - particularly in working capital structure, is essential to uphold the ratings.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 130,344.03
345.79M
1.67%
2144.61
ALLSHR 81,023.99
1,021.87M
1.55%
1236.37
KSE30 39,908.26
141.62M
2.05%
803.27
KMI30 189,535.00
150.29M
1.40%
2619.39
KMIALLSHR 54,783.66
508.76M
1.07%
581.78
BKTi 34,940.73
55.86M
4.37%
1464.05
OGTi 28,296.06
16.02M
1.19%
333.47
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 109,450.00 110,105.00
109,405.00
-835.00
-0.76%
BRENT CRUDE 68.51 69.00
68.48
-0.60
-0.87%
RICHARDS BAY COAL MONTHLY 97.50 0.00
0.00
0.75
0.78%
ROTTERDAM COAL MONTHLY 109.20 110.00
108.25
1.70
1.58%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 66.86 67.50
66.83
-0.59
-0.87%
SUGAR #11 WORLD 15.56 15.97
15.44
-0.14
-0.89%

Chart of the Day


Latest News
July 03, 2025 at 06:01 AM GMT+05:00

MG Morning Breeze: Updates to Skim before Market


July 02, 2025 at 11:05 PM GMT+05:00

Cement sales flat in FY25


July 02, 2025 at 10:50 PM GMT+05:00

SBP reserves cross $14bn mark in FY25


July 02, 2025 at 05:29 PM GMT+05:00

CDNS revises profit rates on savings schemes


July 02, 2025 at 05:05 PM GMT+05:00

PSX in FY25: From Oof to Boom



Top 5 things to watch in this week

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