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Karachi: VIS Credit Rating Company Limited has upheld the entity ratings for Lucky Core Industries Limited at AA/A1+, reflecting high credit quality and strong protection factors. The short-term rating suggests a strong likelihood of timely debt repayment, backed by outstanding liquidity. The outlook on these ratings has been revised from ‘Stable’ to ‘Positive’, indicating potential for future improvement. Previous ratings were announced on February 28, 2024.
According to a statement by VIS Credit Rating Company Limited, Lucky Core Industries Limited, a conglomerate listed on the Pakistan Stock Exchange, operates across sectors including chemicals, pharmaceuticals, and agricultural inputs. The company recently expanded by acquiring assets from Pfizer Pakistan Limited. As part of the Yunus Brothers Group, LCI benefits from a wide-reaching industrial presence.
The maintained ratings reflect LCI’s low business risk profile, leadership in soda ash, and significant polyester market share. The company’s presence in medium to low risk sectors like agri-sciences and pharmaceuticals provides operational diversity. Additionally, the strong market presence and financial health of its sponsors, the Yunus Brothers Group, bolster its ratings.
Financially, LCI is noted for sustained revenue growth and increased profitability, achieved through operational efficiencies despite economic challenges. The company maintains a conservative financial structure, with solid internal cash generation and low gearing. Its liquidity is strong, supported by cash reserves and short-term investments, and coverage ratios remain robust due to prudent debt management.
Future ratings will be contingent on LCI’s ability to maintain profitability across its business segments while preserving its conservative financial and liquidity positions.