Lahore, June 27, 2019 (PPI-OT): Sayban operates in three segments: i) pesticides ii) seeds and bio fertilizer and is a leading player in the former segment. It has laid the milestone of introducing ‘bio fertilizer’ in Pakistan. The Company has a sizeable turnover, with the contribution of each segment, while pesticide remains predominant segment in terms of revenue. Business profitability is sanguine. Sayban has managed to mark its presence in the marker through operational efficacy. The company has retained its market share despite industry fragmentation, economic and agricultural uncertainty.
Sayban is still a partnership – planned to be converted into a private limited company. The governing structure is likely to improve as Sayban moves towards corporate structure. Company meets its working capital requirements through a mix of internal cashflows and short term borrowings. However, the financial risk remains good on account of low leveraged capital structure and adequate coverages. Going forward, the sustenance in bottom-line and cash flows, formalizing the governance and financial transparency is vital. The group has also set up another company under the brand of Comega to advance its business penetration.
The ratings are dependent on sustained business and financial profile of the company. Any deterioration to margins and/or cash flows remains critical to the ratings. The domino effect of restructuring is yet to materialize in near future.
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
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