PACRA Upgrades Entity Ratings of K.K. Rice Mills (Private) Limited

Lahore, February 19, 2020 (PPI-OT):The ratings incorporate K.K Rice Mills’ strong presence in the Rice Export Market with a sizable business volume. Though FY19 remained a slow-pace year for the rice industry, rupee devaluation against dollar favoured the rice exporters to enhance their revenue base. K.K Rice Mills strategizes on adopting a top-line centric approach mainly targeting the Middle East and African region to explore growth avenues. Competitiveness in the International market in terms of pricing and branding remain a key challenge for the rice exporters, wherein Thailand also emerged as a key player in FY19. The Company’s growth centric strategy encompasses maximizing returns through expansion; which comprises addition of a new plant expected to be operational by the end of 1QCY20.

The ratings derive comfort from the progress in financial performance as is indicated in better margins trajectory over the periods. Sponsor’s invested efforts are reflected in (i) development of a corporate culture through enhanced business practices and (ii) clarity on the succession to the next generations. The ratings are dependent upon sustained business volumes and growing profitability margins. Meanwhile, upgraded financial practices and enhanced equity base are considered imperative.

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