Lahore, August 25, 2023 (PPI-OT): The ratings demonstrate Etimaad’s strength, emanating mainly from its sustained operational history. Etimaad has delivered multiple, private infrastructure projects on standalone basis as well as in collaboration with different JV partners with completion spanned over a number of years. 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 strength of the business is reflected in the clientele that the company has served and still continues to do business with, including some of the best and leading names of the business community.

The entity is following a pyramid strategy; the top being mega projects (EPC), followed by construction and lastly maintenance related projects. Company follows a conservative approach on procurement of material while being involved in construction services. Hence hedging the fluctuation in raw material prices. Consequently, posting a limited topline. Overhead cost is being successfully covered with the re-occurring nature of O and M Contracts. The customer list portrays some of the best names in the domestic market.

The Company has a track record of over a decade with strong capabilities in executing turnkey projects, as reflected in repeat orders from customers. The Company is adequately leveraged, undergone a conversion to Syndicated Financing, transitioning from Conventional Banking to Islamic Banking practices aligning with evolving market preferences and the organization's financial needs. The sponsors have demonstrated their commitment to operationally support the business by providing security and personal guarantees to obtain financial facilities.

The ratings are dependent on the sustainability of the business and its financial structure; sustaining a steady revenue stream and financial risk profile. Upcoming projects undertaken by management to streamline business for improved profitability are pivotal for considerable growth. Financial risk metrics need to be upheld. Meanwhile, strengthening of business development structure by inducting expert and experienced professionals is considered a key catalyst for upcoming projects.

For more information, contact:

Analyst,

The Pakistan Credit Rating Agency Limited (PACRA)

Awami Complex, FB1, Usman Block New Garden Town,

Lahore, Pakistan

Tel: +92-42-5869504-6

Fax: +92-42-5830425

Email: hammad.rashid@pacra.com

Website: www.pacra.com