Analyst
Raniya Tanawar
raniya.tanawar@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintains Entity Ratings of Engro Eximp Agriproducts (Pvt.) Limited
Rating Type | Entity | |
Current (27-Dec-18 ) |
Previous (28-Jun-18 ) |
|
Action | Maintain | Maintain |
Long Term | A- | A- |
Short Term | A2 | A2 |
Outlook | Stable | Stable |
Rating Watch | - | - |
The ratings reflect the strength of ownership structure of the company: Engro Eximp is a wholly owned subsidiary of Engro Corp, the parent company and one of the largest conglomerate in Pakistan (rated AA by PACRA). The CEO of Engro Corp is also the Chairman of Engro Eximp. Ratings take comfort from the strong corporate governance framework of the group. The company successfully managed to achieve its break even in this current year, after suffering from huge losses in the past. As per company's anticipation, Engro Eximp returned to profits. The equity base is also expected to take advantage from ensuring profits and reversal of impairment. The financial risk profile has also recovered adequately.
The ratings are dependent upon the maintained business volume and redemption of profits. Adherence to sound financial discipline while strengthening debt servicing capacity through improved cash position is vital for the ratings. Positive outcome of the future projects and Sustainability of profits remain a catalyst for the business
About
the Entity
Engro Eximp Agriproduct (Pvt.) limited, incorporated in 2010, is a wholly owned subsidiary of
Engro Corp. The board of Engro Eximp is chaired by Mr. Ghias Khan – CEO Engro Corp. The board of Engro Eximp Agriproduct (Pvt) Ltd comprises three members and Mr. Khusrau Nadir Gilani is the newly appointed CEO of Exngro Eximp.
Mr. Gilani is an experienced professional with an overall experience of more than two decades and has deployed his services at director level in Engro Eximp previously.