PACRA Maintains Entity Ratings of Ghandhara Industries Limited : AsiaNet-Pakistan

PACRA Maintains Entity Ratings of Ghandhara Industries Limited

June 13, 2019 | General Business News | Share:

Lahore, June 13, 2019 (PPI-OT): Ghandhara Industries Limited (GIL) operates in pickups, trucks and buses segment of the automobile sector. The strength of the company is its alliance with ISUZU – a leading Japanese brand in the country’s trucks and buses segment. ISUZU has enabled the company to build a strong fortress in the competitive industry of Pakistan. The current economic slowdown and rupee devaluation has hampered the overall demand, impacting the business volumes of the company.

Over the years, the company has improved its ranking and share in the market, however, sustainability of the same is important. Recently launched pickup range of ISUZU D-Max, though slow- has also started its contribution. The group has built synergies between the two companies operating in the same sector. The sponsoring group upholds good corporate governance standards.

Their business acumen is further enriched by the group’s stake in the country’s leading tyre manufacturing company. It is important to sustain the growth while managing the rising competition. Foreign players are also taking interest in the local market. The landscape of the industry is expected to change – although it is yet to be seen. The financial risk profile of GIL is strong. The working capital is supported by short term borrowings.

The ratings are dependent on upholding of the company’s business as well as financial risk profile. Two key elements are company’s stance on long term debt and working capital management. Moreover, management’s ability to sustain its market share during the demand crunch is crucial.

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

Tags:

Category: General Business News