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