Karachi, February 14, 2018 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has assigned initial entity ratings of ‘A-/A-2’ (Single A Minus/A-Two) to Associated Technologies (Private) Limited (ATL). Outlook on the assigned ratings is ‘Stable’. The ratings assigned to ATL incorporates low leverage and adequate coverages thereby translating into low financial risk profile of the company. As revenue remains a function of projects awarded to the company, an outcome of competitive bidding, business risk is thereby considered moderately high.
ATL is a family owned business with 100% shareholding vested with Mr. Mobashir A. Malik and family. Principal activities of the company include manufacturing, fabrication of steel towers and construction of civil works. Since its inception, ATL has manufactured and supplied telecommunication towers and developed infrastructure in the sectors of energy, hydropower and telecommunication along with installation of over 14000 Base Transceiver Station (BTS) sites for all the telecommunication operators in Pakistan.
During FY17, net revenue increased primarily as a result of higher civil contracts obtained. Given relatively higher margin in civil contracts business, gross margin of the company stood higher during FY17. Liquidity is considered sound on account of ample cash balance available. Moreover, credit terms of steel supplies are mostly cash on delivery. Cash flows improved while coverages have remained sound. Going forward, variation in cash flows is expected to remain a function of sales and gross margin. By end-FY17, total equity of the company continues to increase on account of profit retention. Debt profile of ATL is considered conservative as evident by its low leverage indicators.
For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk