PACRA Maintains Entity Ratings of Kohinoor Textile Mills Limited

Lahore, June 28, 2019 (PPI-OT): The ratings reflect KTML’s robust business profile emanating from the Company’s presence in the broader value-chain of the textile sector. KTML has a well-organized management structure that allows all business segments to operate with autonomy, each having independent business approach as well as identifiable financial resources. Devaluation of the Pakistan Rupee coupled with volumetric growth in sales, helped in achieving higher revenues and profitability.

The Company has a strong financial profile reflected in improved working capital management, low leveraging and strong coverages. The ratings take comfort from KTML’s association with Kohinoor Maple Leaf Group. KTML’s two subsidiaries (i) Maple Leaf Cement Factory Limited and (ii) Maple Leaf Capital Limited, represent ~81% of its total investment book. Dividend stream from Maple leaf Cement Limited has shown volatile pattern in recent years and is expected to remain suppressed.

The ratings are dependent on the Company’s ability to improve its business margins through technological advancement and related efficiencies, while effectively managing its working capital. At the same time, stable non core income through dividend is considered important.

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