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The Pakistan Credit Rating Agency Limited
Press Release

Date
22-Jan-25

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

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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 Techno Time Construction (Pvt.) Limited

Rating Type Entity
Current
(22-Jan-25 )
Previous
(26-Jan-24 )
Action Upgrade Maintain
Long Term BBB+ BBB
Short Term A2 A2
Outlook Stable Positive
Rating Watch - -

Techno Time Construction (Pvt.) Limited ("TTC" or "the Company") brings nearly a decade of experience in Pakistan's construction industry, having successfully delivered a range of public and government projects, many of which spanned over several years. In addition to its core focus on road and bridge construction, TTC has expanded its portfolio to include infrastructure projects in collaboration with various joint venture (JV) partners. The Company has recently diversified into the development of housing societies and waste management services, marking its strategic expansion beyond traditional construction services. TTC is committed to maintaining the highest standards of quality assurance, environmental management, and health and safety, in accordance with ISO certifications. For FY24, the Company maintained stable revenue performance, reporting PKR 5.1 billion (FY23: PKR 5.3 billion, FY22: PKR 5.2 billion), reflecting consistency in its topline. Despite inflationary pressures driving up project completion costs, TTC’s gross margins remained steady at 26.3% in FY24 (FY23: 25.5%, FY22: 25.4%). The Company’s liquidity position is underpinned by strong cash flow coverages and efficient working capital management. Leverage indicators remain at manageable levels, demonstrating a capacity to absorb risk. TTC’s funding requirements are primarily met through non-funded bank facilities and guarantees provided by its JV partners. This has resulted in relatively low non-funded exposure, with considerable support from leading JV partners. Over the period, TTC’s equity base showed a notable improvement reported at PKR 2.8 billion as of end June 2024 which is considered substantial, particularly in relation to the Company’s non-funded obligations. The stable topline performance, stability in profit margins, improved equity base, successful project execution, and a healthy project pipeline contributed to the Company’s rating upgrade. Furthermore, TTC's diversification into sectors beyond construction bodes well to the assigned rating.
The ratings remain sensitive to TTC’s involvement in the cyclical nature of construction sector, which is vulnerable to political instability and economic volatility. The ratings will continue to rely on the Company’s ability to uphold financial metrics, particularly by ensuring the timely completion of key commercial projects without significant cost or time overruns. Furthermore, sustaining revenue growth while ensuring efficient collections will be crucial. Strengthening governance practices is also imperative.

About the Entity
Techno Time Construction (Pvt.) Limited was founded in 2012 by Mr. Atta Ullah Khan as a partnership firm and later transitioned into a private limited company in 2017. The Company is primarily managed by Mr. Atta Ullah Khan, Mr. Zaka Ullah Khan, and Mr. Samee Ullah Khan, who serve as both board members and shareholders. Mr. Atta Ullah Khan led the Company as Chief Executive Officer (CEO) since its inception in 1995; however, due to his involvement in other ventures, he was succeeded by his youngest brother, Mr. Samee Ullah Khan, in March 2024.

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.