PACRA Maintains Entity Ratings of Nishat Mills Limited

Lahore, November 15, 2019 (PPI-OT): The ratings reflect established position of Nishat Mills as the a premier export-oriented composite unit, with a sizable strategic portfolio and conservative capital structure. The Company enjoy’s prominence in textile sector due to wide array of its products, extensive outreach and stable customer base. Meanwhile, the Company’s revenues are consistently on growing trajectory, a factor of continuous BMR activities, which has helped the Company in maintaining its leading position. Currency devaluation in FY19, coupled with incentives for export-oriented units, boded well for the core operations resulting in better margins and profitability during FY19.

The diverse and sizable investment portfolio, emanating from the Company’s implicit Holdco status within the Group, generates regular divided stream, supporting core income. The volatility in stock market has impacted the investments and equity of the Company in recent times. Nishat Mills continues to maintain a low leveraged capital structure and strong coverages signifying its very strong financial profile. The Company’s association with Nishat Group as its flagship entity, remains a key rating factor.

The ratings are dependent on the Company’s ability to sustain its core margins and profitability. Preserving low leveraged capital structure and sound coverages remain imperative. Meanwhile, further strengthening the governance framework, in line with best practices is considered important.

For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com

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