Tag: ICCI

February 20, 2020 (MLN): GlaxoSmithKline (Pak) Ltd (GLAXO) has informed that Mr Aziz ul Haq has submitted his resignation as Chief Executive Officer. The board of Directors has accepted his resignation with effect from March 01, 2020, according to notice issued to PSX.

In a meeting, the BoD has appointed Ms Erum Shakir Rahim as CEO of the company with effect from March 01, 2020who presently serve as General Manager, GSK Indonesia Pharma Emerging Markets.

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February 20, 2020 (MLN):  The imports of mobile phone witnessed a significant growth of 141.65% YoY and 22.73 % MoM to stand at $144 million in the month of January 2020.

According to the commodity-wise data released by Pakistan Bureau of Statistics (PBS), mobile phone imports during 7MFY20 jumped by 79.5% YoY to stand at $760 million as compared to the corresponding period of last fiscal year.

On the other hand, imports of Other Apparatus associated with the Communication sector declined by 40% YoY and 9.45% MoM to $40 million in January 2020.

 During 7MFY20, other apparatus imports went down by 25.33%YoY to $268 million.

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February 20, 2020: VIS Credit Rating Company Limited has assigned initial entity ratings of ‘AA+/A-1+’ (Double A Plus/A-One Plus) to Lucky Cement Limited (LCL).

The medium to long-term rating of ‘AA+’ signifies high credit quality; Protection factors are strong.

The short-term rating of ‘A-1+’ signifies high certainty of timely payments; short-term liquidity including internal operating factors and/or access to alternative sources of funds is outstanding and safety is just below risk-free Government of Pakistan’s short-term obligations. Outlook on the assigned rating is ‘Stable’.

Assigned ratings incorporate LCL’s leadership position in the cement sector, diversified business risk profile, consistently strong operating performance, robust financial profile and sound corporate governance framework.

Ratings assigned to LCL also draw support from strong financial profile and diversified presence of the Company’s sponsor, Yunus Brothers Group (YBG) which is a leading conglomerate having presence across multiple sectors including Cement, Power, Real Estate, Textiles, Chemicals, Pharmaceuticals, Healthcare, Food and Automotive Sectors.

Business risk profile incorporates cyclical nature of the cement industry. Cement sector has recently entered competitive phase with increasing capacities exerting pressure on selling prices which has been compounded by rising cost of inputs.

Sizeable export growth has supported capacity utilization particularly for South based players. Demand patterns synchronizing with substantial supply side dynamics will be important for improvement in sector dynamics.

In this regard, proposed commencement of infrastructure projects would support dispatches and sector outlook. Overall business risk profile is supported by core cement operations being complemented by investments in multiple sectors including Power, Automobile, Pharmaceutical, Polyester, Animal Health and Chemicals & Agri Sciences.

VIS expects investments to significantly support earnings over the medium term reflecting a well-diversified business risk profile.

Assessment of financial risk profile incorporates healthy liquidity and capitalization indicators. LCL’s efficient operations, strong balance sheet and surplus liquidity have facilitated in maintaining a satisfactory profitability profile despite challenging operating environment.

Profitability indicators (ROAA and ROAE) are expected to revert to normal levels over the medium term once dividend income from investments materializes and cement sector dynamics improve. Strong liquidity profile is evident from healthy cash flows, strong coverages and surplus liquidity on balance sheet.

Moreover, low leverage indicators, conservative financial policy and healthy internal capital generation depicts sound capitalization profile.

Ratings remain dependent on maintaining a healthy financial profile and materialization of diversification benefits from investments undertaken.

VIS