Lahore, December 28, 2020 (PPI-OT): Usmani International Associates (UIA) has been operating in the construction industry for many decades. Construction business is dependent on award of public works and initiatives taken by the public and private sector, muted activity is witnessed therein; furthermore, the countrywide lockdown to combat Covid-19 pandemic put a halt in constructional activities. The topline has continued to show a declining trend from the previous year after three years of consecutive growth, reflected from the assigned ratings.
The reported profitability in terms of gross margin is adequate, though operational efficiency needs to be harnessed. The audited accounts of the company for FY20 reflect the sustained business and financial risk profile of the entity. The governance framework is expected to evolve, going forward. The control environment may be strengthened by harnessing the audit quality and adopting semi-annual accounts. The ratings are dependent upon the sustained positioning of the company in the industry.
The rating dependent on continued business activity and sustained operational capability. Adherence to sound financial discipline while capturing the market through competitive and efficient bids is pivotal for survival. Strengthening of the project pipeline is also essential for the ratings. Improving governance and control environment is also important.
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
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