The Pakistan Credit Rating Agency Limited
Press Release


Ahsan Zahid

Applicable Criteria

Related Research

This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Upgrades Entity Rating of Etimaad Engineering (Pvt.) Limited

Rating Type Entity
(26-Aug-22 )
(26-Aug-21 )
Action Upgrade Upgrade
Long Term A- BBB+
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

Etimaad Engineering is engaged in the business of executing industrial projects related to oil & gas and power projects; general contracting involving civil and electromechanical construction; EPC/plant retrofits works as well as infrastructure development projects in Pakistan. Etimaad is thriving in a competitive environment and has successfully delivered large number of industrial and infrastructure development projects on standalone basis as well as in collaboration with its international JV partners. The Company’s revenues emanate from recurring businesses as well as from new projects that are geographically spread all across Pakistan. The strength of the business and quality of management exhibited by the Company, is reflected in the clientele that the company has served and continues to do business with, including the almost all of the leading blue-chip names of the business community. The Company’s strong financial capability makes it less reliant on advance payments model and therefore, is relatively less exposed to contingent liabilities risk compared to other players in the industry. Over the past few years, the Company has entered into long term contracts with its clients which has enabled the Company to demonstrate sustainable and continual growth in the revenue as well as profitability. The future projections are sanguine. The Company follows a conservative approach on debt profiling while maintaining a fiscal discipline. The working capital structure is proficiently managed and this has resulted in efficiently abating the finance cost. Furthermore, the sponsors have, since beginning, demonstrated their commitment to operationally support the business.
The ratings are dependent on the sustainability of the business, its robust financial structure, steady revenue stream with organic growth and its risk profile. Upcoming projects focused by the Company’s management are pivotal for targeted growth while maintaining the financial risk metrics. Governance and corporate structure is evolving and to be complied with best practices and improved financial transparency. Management is focused and has initiated steps to corporatize its structure which will enable the Company to achieve its long-term objectives.

About the Entity
Established by a team of professionals in May, 2007, Etimaad is an integrated engineering and contracting company. The company is engaged in providing turnkey, retrofit and debottlenecking solutions for power/oil & gas sector, project management, general industrial construction (Civil, Mechanical, E&I), shut-down and turnaround services. Etimaad's two-member board is chaired by Mr. Mohammad Sohail Shafique, who holds 25.6% shareholding, is an Engineer with more than three decades of experience with renowned organizations. Mr. Farooq Hussain Mughal, President & CEO, holds 26.9% shareholding and is supported by qualified and experienced team. Grant Thornton Anjum Rehman, Chartered Accountants, is the external auditor of the Company.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.