PACRA Upgrades Entity Ratings of Ahmed Fine Weaving Limited

Lahore, November 29, 2019 (PPI-OT): The ratings of Ahmed Fine Weaving Limited (Ahmed Fine Weaving) reflect its improving business profile emanating from growth in revenues and profitability. Ahmed Fine Weaving is a family owned public unlisted company with adequate weaving capacity. Currency devaluation and subsidized rates for electricity and gas, boded well for the core operations resulting in better margins. The management’s focus on efficiency has strengthened performance by expanding volumes and diversifying its product profile.

This has been achieved through consistent BMR activities in recent years. The Company’s management is cognizant of textile industry volatility and has planned phase wise up gradation of machinery to remain competitive. The Company enjoys strong financial profile characterized by, efficient working capital cycle, strong coverages and intermediately leveraged capital structure. The governance framework can be further strengthened.

The expansion projects have been financed through SBP loans with concessionary rates, which provides comforts amidst high interest rate scenario. The ratings are dependent on the management’s ability to uphold the entity’s performance trend. Meanwhile, maintaining strong margins and coverages to fulfill financial obligations will remain critical. Improvement in governance framework is considered important.

For more information, contact:
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

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