Tata textile Mills becomes a victim of China-USA trade war: PACRA

News Image

MG News | April 04, 2019 at 01:23 PM GMT+05:00

0:00

April 4, 2019: Pakistan Credit Rating Agency has assigned long-term rating of ‘A-’ and short-term rating of ‘A2’ to Tata Textile Milss Limited. The outlook assigned to the company is ‘stable’.

Spinning industry has recently suffered as lower demand for cotton yarn from China owing to trade war with USA has led to lower exports volume and margins. Consequently, Tata Textile's margins and, in turn, profitability have deteriorated.

The ratings of Tata Textile reflect the financial risk profile of the Company which is characterized by moderate leveraging, strong coverages despite high interest rates and adequate working capital management. Long association of experienced and professional management team adds comfort.

Going forward, management is planning to merge all three textile entities in order to benefit from the economies of scale.

The ratings are dependent on improving business margins while maintaining financial risk at low level. Prudent management of short-term liquidity and sustained coverages are important. Going forward, materialization of successful merger of all three textile entities would be rating essential.

Copyright Mettis Link News

Related News

Name Price/Vol %Chg/NChg
KSE100 138,412.25
167.69M
0.32%
447.43
ALLSHR 85,702.96
423.92M
0.15%
131.52
KSE30 42,254.84
82.09M
0.43%
180.24
KMI30 194,109.59
84.37M
0.15%
281.36
KMIALLSHR 56,713.67
217.03M
0.03%
16.37
BKTi 37,831.34
13.04M
1.62%
603.62
OGTi 27,440.63
3.93M
-0.09%
-23.70
Symbol Bid/Ask High/Low
Name Last High/Low Chg/%Chg
BITCOIN FUTURES 118,740.00 119,440.00
118,145.00
445.00
0.38%
BRENT CRUDE 72.82 73.17
71.75
0.31
0.43%
RICHARDS BAY COAL MONTHLY 96.50 0.00
0.00
2.20
2.33%
ROTTERDAM COAL MONTHLY 104.50 104.50
104.50
-0.30
-0.29%
USD RBD PALM OLEIN 998.50 998.50
998.50
0.00
0.00%
CRUDE OIL - WTI 69.53 69.79
68.45
0.32
0.46%
SUGAR #11 WORLD 16.45 16.58
16.37
-0.14
-0.84%

Chart of the Day


Latest News
July 30, 2025 at 05:54 PM GMT+05:00

Pakistan BCI decreased by 1.2 points in July


July 30, 2025 at 05:17 PM GMT+05:00

Pakistan consumer confidence falls to 40.1 points in July


July 30, 2025 at 05:03 PM GMT+05:00

PKR rises by 10 paisa against USD


July 30, 2025 at 04:11 PM GMT+05:00

PSX Closing Bell: You Can’t Always Get What You Want



Top 5 things to watch in this week

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