PACRA Maintains Entity Ratings of New Horizon Computer

New Horizon Computer (‘the Business’) is an established IT solutions provider in Pakistan, with operations spanning over two decades since its founding in 1999. From its origins as a single-office operation in Karachi, the Business has scaled to a workforce of over 300 professionals, with a presence across Karachi, Lahore, Islamabad, and other major cities. The Business offers a comprehensive suite of IT products and services, encompassing virtualization solutions (VMware, Microsoft, Citrix), enterprise and archiving systems, converged networks, communication equipment, power and backup services, and technology licensing. The Business’s client base is diversified across high-value verticals, including financial institutions, oil & gas companies, educational institutions, government entities, and NPOs — a composition that provides a degree of revenue stability and reduces dependence on any single sector.
Pakistan’s IT sector continues to demonstrate strong structural momentum, supported by a young and increasingly digitally engaged population, rising internet penetration, and a maturing technology services ecosystem. IT exports reached USD 3.8 billion in FY25, representing approximately 18% growth year-on-year from USD 3.2 billion in FY24 — a trajectory that reflects growing international demand for Pakistani IT services. Despite robust industry tailwinds, the Business maintained a cautious stance, leading to ~8.6% year-over-year contraction in revenues during FY25, reflecting a moderation in topline volumes. Notwithstanding this revenue decline, the Business demonstrated a meaningful improvement in profitability metrics. Gross profit margins expanded by ~2.6%, attributable to a more favorable revenue mix and improved cost management, which in turn supported a corresponding improvement in operating profit margins. Net margins strengthened to approximately 14.2%, driven primarily by a material reduction in finance costs — driven by the easing in policy rates. The overall financial risk profile of the Business is assessed as moderate. Coverage metrics are considered adequate and provide a degree of support to the rating. Working capital requirements continue to be financed primarily through short-term borrowings, reflecting the nature of the Business’s operating cycle. The capital structure remains elevated in terms of leverage, and a sustained deleveraging trajectory — supported by continued profitability improvements and disciplined debt management — would be a positive development
The ratings are dependent on the management's ability to diversify the revenue stream by global outreach along with stabilizing margins and profitability. However, improving the financial profile of the Business remains crucial. Meanwhile, strengthening governance practices will have a positive impact on the ratings. Any deterioration in debt coverages leading to higher financial risk or substantial losses will have a negative impact on ratings.

About the Entity
New Horizon Computer (‘the Business’) is an Association of Persons (AoP), registered in 2003. The Business is owned by Mr. Hanif Akbar Ali (approximately 51%) and Mr. Rahim Iqbal (approximately 49%), with Mr. Rahim Iqbal serving as Chief Executive Officer. The near-equal ownership structure concentrates governance and decision-making authority within a two-partner framework, with no institutional oversight. The primary business activity is the provision of IT-based solutions to corporate and institutional clients across Pakistan