PACRA Maintains Entity Ratings of Etimaad Engineering (Private) Limited

Lahore, May 16, 2019 (PPI-OT): The ratings demonstrate Etimaad’s strength which stimulates from its sustained operational history. The business has optimal mix of contracts in its domain and has managed to complete reasonable number of contracts in Pakistan. The slowdown in revenue for the current period has been primarily due to delay on some sizable projects. The pipeline is healthy; therein for the sake of sustainable long term growth, management follows a balanced approach aiming to gain more share in different lines of businesses.

The entity is following a pyramid strategy; the top being mega projects (EPC), followed by construction and lastly maintenance related projects. The entity is eyeing further diversity in its revenue stream in the near future from specific dimension of real estate development project. Management efforts to recover previous years losses is expected to materialize by end-FY19. Company is adequately leveraged and determined to reduce its conventional borrowing over a short term horizon. The performance of the company rests with projects in hand and timely completion.

The sponsors have demonstrated their commitment by operationally supporting the business by providing security and personal guarantees to obtain financial facilities. Meanwhile, strengthening of business development structure by inducting expert and experienced professionals is considered a key catalyst for upcoming projects. Rating is dependent upon several contracts successfully completed and upcoming projects undertaken by management to streamline its business for improved profitability, which is pivotal for considerable growth.

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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