Lahore, February 20, 2019 (PPI-OT): The ratings reflect adequate profile of Awan Trading Company characterized by sizeable market share in imported coal, especially retail market. Over the last few years, the company has improved its business and financial profile. The performance of the company has improved on account of sustained profitability and improving margins. The company has arrangements regarding supply of coal with various suppliers globally. Awan Trading Company follows strategy of keeping some inventory in stock which is stored in rented/custom bonded warehouses.
The business profile has shown improvement due to growth in topline and profits. The Awan Group caters to the coal demand of the corporates through another entity as well as having profitable operations. The financial risk profile is adequate. The company has sizable lines (funded and un-funded) available from different banks to cater to supplier demand though utilization level is still high compared to turnover. Going forward, management’s attention on sustainable customer base is imperative.
The ratings are dependent on the company’s ability to maintain its market position. Proactive management of business affairs, thus sustaining margins and coverages is important. Meanwhile, strengthening in governance structure is needed to improve financial transparency and oversight.
For more information, contact:
Analyst
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore – Pakistan
Tel: +9242 586 9504 -6
Fax: +9242 583 0425
Email: hammad.rashid@pacra.com
Web: www.pacra.com