Beacon Impex’s PKR 1 Billion Sukuk Assigned Preliminary Ratings by PACRA

Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has assigned preliminary ratings to a PKR 1 billion sukuk issued by Beacon Impex (Pvt.) Limited, highlighting the company’s strong position in Pakistan’s textile sector, especially in the specialized underwear and bodywear segment. As a fully vertically integrated manufacturer, Beacon Impex covers the entire textile value chain, from spinning to garment assembly, with a significant focus on bodywear garments such as boxers and briefs.

Beacon Impex’s clientele includes globally recognized brands, with Puma leading in revenue contribution for FY24, followed by Hugo Boss, Levi’s, and Amazon. The company reported a 29.5% increase in its top line for the first half of FY25, reaching PKR 23,479 million, compared to PKR 36,274 million for FY24. This growth is attributed primarily to improved business volumes, with Europe being the primary export destination.

Despite a decline in gross margins due to raw material prices, inflation, and wage increases, the company’s financial risk profile remains positive, supported by effective working capital management. Beacon Impex plans to issue commercial paper to diversify its funding sources and support working capital needs, maintaining a leveraged capital structure with a mix of short-term borrowings and long-term loans for capital expenditures in the textile sector.

The US recently announced a 29.0% trade tariff on Pakistan, though its implementation has been deferred for 90 days, affecting approximately 20% of Beacon Impex’s exposure to the US market. The company’s sukuk is secured by a ranking charge over current assets, with a Debt Payment Account (DPA) established under the lien of the Investment Agent to ensure timely payments.

The principal repayment will be made in a bullet payment, with profits paid quarterly, reinforcing Beacon Impex’s commitment to maintaining financial stability amidst external challenges.