PACRA Maintains Entity Ratings of DEL Engineering Domestic (Pvt.) Limited

DEL Engineering Domestic (Private) Limited (“DEDL” or “the Company”) is one of the Holding Companies of DESCON Companies, a prominent Pakistani multinational involved in infrastructure development. The Group has expertise across multiple sectors, including Oil & Gas, Power, Hydro Power, Dams/Barrages/Canals, Fertilizer, Renewable Energy, Sugar, Industrial, Chemical, and Petrochemical Industries. The Group’s international presence is primarily concentrated in the Middle East. DEDL manages the foreign portfolio of the Group and provides a wide range of services, including Design Engineering, Procurement, Manufacturing, Construction, Commissioning, Industrial Services, and Operations & Maintenance (O&M). The Company operates in several countries, including the UAE, Qatar, Saudi Arabia, Kuwait, Oman, Iraq, South Africa, and Pakistan, and is in the early stages of expanding its investment portfolio in the European region. A significant portion of DEDL’s revenue is generated from plant maintenance projects in the oil and gas sector, with the remainder stemming from construction and fabrication-related work. The Company has successfully acquired and executed numerous projects for blue-chip clients globally. Due to the nature of its business, DEDL does not require substantial capital funding relative to the size of the projects it undertakes, although non-funded obligations are essential to its operations. DEDL’s balance sheet includes two types of investments: core investments, which consist of unlisted subsidiaries, and non-strategic investments, which comprise short-term investments in Term Deposit Receipts (TDRs) and mutual funds, providing a strategic liquidity buffer against unforeseen risks. The Company primarily derives income from foreign remittances and dividends from its equity investments in foreign subsidiaries and associates. During FY24, total investment income saw a slight decline, reaching approximately PKR 610 million (FY23: PKR 657 million). The income from short-term investments mainly comprises interest earned from TDRs.
The ratings are reliant upon the performance of existing investments and the effective execution of the Company's business strategies, which are anticipated to yield a steady dividend stream. Additionally, maintaining a robust project pipeline, along with a strong financial profile and liquidity, is crucial. Any substantial increase in debt or a prolonged downturn in the performance of invested companies will impact the ratings.

About the Entity
DEDL was incorporated on July 11, 2013, as a private limited company in Pakistan. It is entirely owned by the Abdul Razak Dawood Family (ARD Family). The ownership structure of DEDL is primarily controlled by Abdul Razak Dawood, who holds approximately 94.27% of the Company’s shares, making him the majority stakeholder. The remaining equity is held by other family members, with Bilquis Dawood owning about 2.86%, Mr. Taimur Dawood and Mr. Faisal Dawood each holding approximately 1.15%, and Ms. Mehreen Dawood owning the remaining 0.57%. The Company’s seven-member Board of Directors is predominantly led by family members, including Chairman Mr. Taimur Dawood and Vice Chairman Mr. Faisal Dawood. The remaining three directors are non-executive. Mr. Taimur Dawood, who serves as the CEO, has over 20 years of extensive experience in engineering, product marketing, project finance, strategy development and implementation, and mergers and acquisitions. The registered office of DEDL is located at 18-KM, Ferozepur Road, Lahore.