Lahore, December 31, 2018 (PPI-OT): The ratings denote Air Link’s adequate operational sustainability underpinned by its solid market position, balanced earnings contributions from its mobile business, as well as its strong financial profile. Association with strong brands, Huawei and Samsung, enables Air Link to propel the growth wheel forward.
Over the last few years, the Company has improved its business profile. The company’s topline is witnessing ample growth mainly because of increase in sale of Huawei and Samsung. FCFO of the company witnessed decent improvement owing to higher EBITDA. All the operations of the group are now formally transferred to Airlink Communication (Private) Limited. Improvement in governance structure is being witnessed as the company is inducting three independent directors on the board.
The company’s import driven business model is secured against cash margin with insurance for the in-transit. The company’s financial risk profile is adequately covered. The company has enduring emphasis on control environment, as endorsed by the sponsors. A reflection of this is transition towards corporate structure and audit quality. Move is on the horizon for public listing. Ratings incorporate that Air Link operates in a fast moving market where timely introduction and sale of products is crucial. The growth in revenue is expected to increase further with the implementation of DIRBS system.
The ratings are dependent on the company’s ability to strengthen its market position, gain in terms of EBITDA and profitability margins. Continuous improvement in governance structure is essential for the ratings. Seamless financial discipline is 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