Lahore, July 30, 2018 (PPI-OT): Sarena Industries and Embroidery Mills (Private) Limited specializes in weaving, dyeing, printing, finishing and stitching. The company offers a variety of special finishes and is the only licensee for PROBAN® in Pakistan. The company employs experienced professionals, aided by comprehensive reporting who look after operations with autonomy. The company has a balanced sales mix and the greater part of the sales revenue comes from processing sales.
Recent devaluation of the rupee enabled the company to capitalize on positive dynamics and was able to grow its revenue and margins in line with industry trends. The company has a strong financial profile categorized by a moderately leveraged capital structure and a relatively stretched working capital due to high net working capital days. A significant increase in Cashflows resulted in strong coverages for the company.
The ratings are dependent on the management’s ability to improve governance framework. Additionally, working capital management and ensuing borrowings should be monitored closely. Adverse movement in margins and/or coverages will negatively impact the ratings.
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