logo
The Pakistan Credit Rating Agency Limited
Press Release

Date
26-Aug-21

Analyst
Anam Waqas Ghayour
anam.waqas@pacra.com
+92-42-35869504
www.pacra.com

Applicable Criteria

Related Research

Disclaimer
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 Ratings of Etimaad Engineering (Pvt.) Limited

Rating Type Entity
Current
(26-Aug-21)
Previous
(03-Mar-21)
Action Upgrade Maintain
Long Term BBB+ BBB
Short Term A2 A2
Outlook Stable Stable
Rating Watch - -

The ratings demonstrate Etimaad’s strength, emanating mainly from its sustained operational history. The upgrade reflects Etimaad's sustained improvement in business performance, with growth in revenue and margin, aided by healthy relationships with existing customers, and extensive experience of the management. The pipeline is healthy; therein for the sake of sustainable long term growth, management follows a balanced approach aiming to gain more share in different lines of businesses. The strength of the business is reflected in the clientele that the company has served and still continue to do business with. There are some of the best and leading names for the business community of the country. The entity is following a pyramid strategy; the top being mega projects (EPC), followed by construction and lastly maintenance related projects. The customer list portrays some of the best names in the domestic market. The Company has a track record of over a decade with strong capabilities in executing turnkey projects, as reflected in repeat orders from customers. The Company is adequately leveraged and primarily relates to the projects in hand and timely completion. The sponsors have demonstrated their commitment by operationally supporting the business by providing security and personal guarantees to obtain financial facilities.
Meanwhile, strengthening of business development structure by inducting expert and experienced professionals is considered a key catalyst for upcoming projects. Financial risk metrics need to be upheld. Rating is dependent upon the successfully completion of several projects and upcoming projects undertaken by management to streamline its business for improved profitability, which is pivotal for considerable growth.

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 two decades of experience with renowned organizations. Mr. Mazharuddin Ansari (late)'s family, holds 37.4% shareholding. Mr Farooq Hussain Mughal, President & CEO,is a fellow chartered accountant, holds 26.9% shareholding and is supported by a qualified 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.