KSB Pumps Company Limited Maintains Strong Position in Pump Manufacturing

Karachi, KSB Pumps Company Limited, a leading pump and valve manufacturer in Pakistan, continues to hold its prominent position in the industry, as per the latest ratings by The Pakistan Credit Rating Agency Limited (PACRA). The company’s strong association with KSB SE & Co. KGaA, Germany, positions it among the top global pump manufacturers, allowing it to leverage significant competitive advantages in both the domestic and international markets.

According to The Pakistan Credit Rating Agency Limited, KSB Pumps benefits from its state-of-the-art manufacturing facility, which is certified by KSB Germany as MBK – Made by KSB. This certification, combined with robust systems, controls, and access to KSB Germany’s licensing and technical knowledge, provides KSB Pumps with a competitive edge. The company has significantly expanded its market share in the pump industry. Its revenue streams are diversified, with a substantial portion coming from industrial pump sales and raw component exports to other KSB group companies worldwide.

KSB Pumps has successfully increased its exports by leveraging its MBK certification and expertise. The company has also expanded its presence in Karachi and Lahore by opening two new workshops to support its aftermarket business, branded SupremeServ. Despite a shift in sales strategy from public to private sectors for improved liquidity, the company’s financial profile remains robust, characterized by a moderately leveraged capital structure.

However, the increase in finance costs has offset the improved gross margins from higher export sales. KSB Pumps recorded a topline of PKR 4.242 million in 9MCY23, compared to PKR 4.965 million in CY22 and PKR 4.334 million in CY21. The company faces challenges in working capital management and coverage ratios, despite transitioning to private customers and focusing on exports.

KSB Pumps is a subsidiary of KSB SE & Co. KGaA, Germany, which holds approximately 58.89% of its shares. The company was incorporated in July 1959 and got listed on the Pakistan Stock Exchange in 1971. Its manufacturing facility is located at Hassanabadal. The ten-member board is chaired by Dr. Sven Baumgarten, with Mr. Imran Ghani as CEO and Mr. Imran Ahmad as CFO, bringing over 20 years of diversified financial experience to the company.

PACRA’s ratings for KSB Pumps are contingent upon the company’s ability to enhance its core margins and profitability through diversification, execution of higher margin projects, and increased exports to group companies. Effective working capital management and strong coverage ratios with improved capacity utilization are also deemed crucial for the company’s future ratings.

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