PACRA Continues Ratings for Stylers International Limited Amidst Textile Market Challenges

Lahore, Stylers International Limited, a leading textile enterprise of the US Group, is an integral component of the AJ Holdings umbrella, receiving strategic guidance from the sponsors and being driven by professional management teams.

According to a news release by PACRA, Stylers International’s operational and strategic directions are rooted in well-established frameworks. With management that consists of industry veterans, the company benefits from detailed reporting, fostering independent oversight. The ratings draw confidence from Stylers International’s connection with the US Group. During 9MFY23, the company logged sales revenue of PKR 10.8 billion, a rise of 11.3% compared to the same duration in the previous year. The bulk of these earnings, 98%, stemmed from export sales. Notable export destinations during this period spanned countries like the US, Spain, Germany, and France. Despite experiencing reduced capacity utilization due to weakened export demand, the management remains optimistic about a potential resurgence in demand from January 2024. The previous fiscal year saw a dip in Pakistan’s textile exports by 15%, a decline influenced by heightened energy expenses, cotton scarcity, and foreign exchange ambiguities.

The company’s ratings hinge on its capability to uphold a robust business profile given the existing challenges. It is vital for the company to maintain a low-leverage capital structure and ensure strong financial coverages.

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