Lahore, January 29, 2016 (PPI-OT): The Pakistan Credit Rating Agency (PACRA) has maintained the long-term and short-term entity ratings of AutoSoft Dynamics (Private) Limited (AutoSoft) at “A-” (Single A Minus) and “A1” (A One), respectively. The ratings denote a low expectation of credit risk and a strong capacity for timely payment of financial commitments.
The ratings reflect AutoSoft’s low financial risk stemming from the company’s financial conservatism exhibited by its equity based capital structure; enabled through healthy cash generation ability and surplus funds. The company operates in both local and selected foreign markets (primarily Africa), adding geographical diversification to the revenue stream. AutoSoft’s core product – AutoBANKER – contributes significantly to revenues – mainly new licenses and maintenance services.
The company is at an advanced stage of launching new version of its core product that would be aligned to emergent needs of customers. At the same time, new products especially Auto MWALLET have been added to the suite – wherein fresh clients are being tapped. Notably, recurring revenue is inching closer to provide full coverage to operating costs. Many established international players operate in AutoSoft’s target markets; competition in these markets is challenging.
The rating is dependent on the company’s ability to enrich its revenue stream through continuous investment in requisite research and development initiatives. At the same time, efficiency in working capital management, effectiveness of realigned organizational structure, and strengthening of the governance framework would be essential.
For more information, contact:
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
Category: General Business News