PACRA maintains the Entity Ratings of Unicol Limited

The ratings reflect Unicol Limited’s ('Unicol' or 'the Company') established market position and the strategic diversification of its business operations. As a prominent player in Pakistan's ethanol industry, Unicol benefits significantly from its strong organizational heritage, being a joint venture between three well-reputed industrial groups: Ghulam Faruque Group, Amin Bawany Group, and Hasham Group. This affiliation provides the company with robust financial support and deep-rooted expertise in the sugar and allied sectors. The company’s strategic acquisition of sugar mill assets has further strengthened its business profile, transforming it into a more diversified entity capable of navigating the cyclical nature of the agricultural and commodity markets.
During MY25, the company reported a topline of PKR 20,996mln (MY24: PKR 19,218 mln) mainly due to substantial increase in local sales which reached PKR 11,625 million. During the year, Unicol produced 47,251MT of ethanol during MY25 (MY24:55,568MT) with utilization of 84% (MY24:99%). However, revenue from ethanol declined to PKR 10,795mln from PKR 13,012mln in the previous year, driven by volumetric decline coupled with global competitive pricing. Profitability indicators showed an upward movement; gross profit margins reached 14.8% (MY24: 7.3%) and operating margins rose to 11% (MY24: 4%). Net income surged to PKR 385mln recovering from the loss of PKR 1,958mln in the previous year, primarily due to a 36.4% reduction in finance costs. The Company’s liquidity profile also strengthened, as evidenced by a narrowed working capital cycle of 61 days (MY24: 80 days) and an increase in FCFO to PKR 2,396mln (MY24: PKR 981mln). Unicol continues to maintain a highly leveraged capital structure, though debt-to-equity ratio improved to 71.6% from 77.6% as compared to the corresponding year. Leveraging is mainly attributable to the acquisition of sugar mill assets. Overall, the governance framework remains a core strength, characterized by an experienced board and a professional management team that provides clear strategic direction coupled with the continued support from its sponsoring groups.
The ratings are dependent upon the management’s ability to sustain margins, improve performance, effectively manage working capital requirements, while maintaining a prudent debt profile.

About the Entity
Unicol Limited was incorporated in 2003 as a public unlisted company. Unicol is a joint venture among three public listed sugar mills: Faran Sugar Mills Ltd., Mehran Sugar Mills Ltd., and Mirpurkhas Sugar Mills Ltd., each holding an equal stake of ~33.33%. The Company's Board is chaired by Mr. Asif Qadir. Mr. Aslam Faruque heads the Company as the Chief Executive Officer. He is supported by a team of experienced professionals. The Company's formal operations begun in 2007 and since then its primarily involved in the manufacturing and sale of ethanol, liquid carbon dioxide (LCo2), sugar and its by-products. The company's annual capacities include 56,000MT for ethanol, 18,000MT for LCo2, and 8,000 TCD for sugar production.