AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore, December 19, 2019 (PPI-OT): Poultry is one of the largest agro based segment in Pakistan, accounting both domestic and commercial poultry. With an investment of almost PKR 700bln in FY19, industry has posted an annual growth of ~ 12%. Pakistan is sufficient in poultry meat and egg production. However, per capita protein consumption remains low when compared to the world’s average.
The ratings reflect Islamabad Farms developing position in poultry industry and sponsors strong acumen across the integrated supply chain. Islamabad Farms revenue showed concentration towards day old chicks and posted a dip. Procuring feed in bulk from Group’s own company benefited the margins and remain in line with industry players. Profitability remain modest. Islamabad Farms remains exposed to price volatility and contingent health risk associated to its product. Financial risk profile of Islamabad Farms is characterized by moderate leverage and adequate coverage ratios. Loan mix is skewed towards short term borrowings to fulfil the working capital requirements.
The ratings are dependent on the management’s ability to prudently manage the working capital requirements. Improving margins, in turn, building profitable volumes remain critical for the ratings. Effective changes in governance framework would be beneficial for the ratings. Significant deterioration in coverages and/or margins will have negative impact on the ratings.
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