PACRA Upgrades Entity Ratings of Warble (Pvt.) Limited

Warble (Pvt.) Limited (herein referred to as 'Warble' or 'the company') operates in three segments, namely: i) pesticides ii) seeds and iii) fertilizer. Warble has, with time, expanded its operations by entering into different businesses in the agriculture industry while achieving operational efficiency. The company is part of one of the pioneer groups of the industry. After incorporation in 1995, the company has been able to cement its position as a major market player in the sector. Warble has reported adequate turnover, with good contribution of each segment, while pesticide remains the predominant segment, in terms of revenue. Profitability of the company, though, has room for improvement. The company's plant is located at Khanewal; near the company’s home market (Multan), which benefits its cost structure. The company has secured its sales by the franchise network named 'AGROMART', complimented by frequent interaction with the end consumers. It meets its working capital requirements through a mix of internal cashflows and short term borrowings. However, the financial risk remains under control, on account of low long term finance and adequate coverages. Supply mechanism of raw material, predominantly from China, was under pressure, in the wake of the global pandemic Covid-19. Subsequent to the ease in lockdown restrictions, such constraints have subsided. The ratings take comfort from the sponsor strength, with AllahDin Group having interests in various segments of the agriculture industry, for more than 2 decades. Having a diversified product mix bodes well for the company and the group, in the wake of an ever-changing landscape in the industry. The ratings also take into account the superior quality of the production process and notable production capacity of the company. Going forward, the improvement in bottom-line and cash flows, standardization in governance structure and financial transparency is vital.
The ratings are dependent on the improvement in business and financial profile of the company. Any deterioration to topline, margins or cash flows remain critical to the ratings. The company's sustained business performance in the currently stretched economic scenario, amid Covid-19 and locust swarms, remains vital to the ratings.

About the Entity
Warble, a private limited company, was incorporated in the year 1995. It is one of the pioneer companies of the AllahDin Group. There has been a recent shift in the ownership structure of the company. Shareholding of the founding generation comprising Ch. Ifitikhar Nazir, the Group Chairman, and his brother Mr. Atta Ur Rehman, the CEO of Warble, has been transferred to their respective sons. The company is now majority owned by the two cousins, Mr. Masood Ur Rehman (51.0%) and Mr. Zain Iftikhar (47.4%), while the rest of the ownership is held by Ch. Iftikhar's wife, Mrs. Ghazala Asmat. The board of directors comprises three members. Ch. Iftikhar Nazir, is the pioneer of AllahDin Group of companies. He has extensive experience of over 3 decades, in the industry. Mr. Zain Iftikhar Chaudhry, son of Ch. Iftikhar Nazir, is COO of the company. He is a graduate in Financial Management Services, from York University, Toronto.