PACRA Assigns Initial Entity Ratings to BBJ Pipe Industries Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- May 09, 2019 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

Quote

BBJ Pipes Industries Limited, a family operated business, is engaged in steel and polyethylene pipes industry. The company has been catering to the demand of government/corporate projects since last many years. The ratings reflect an adequate market presence of the company in a highly fragmented industry. Over the last few years, the company's business risk profile has strengthened on account of better volumetric sales. Furthermore, the company is expanding its production capacity which may bode well in coming years. Steel pipe industry has some vital players operating in the market yet BBJ has earned a good name in its respective niche.

The Company operates on adequate but improving business margins. The financial risk revolves around higher short-term borrowings to support the working capital - inherent need of the business model followed by the company. The ratings also take into account...