PACRA Assigns Initial Entity Ratings to Orient Rental Modaraba - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- November 06, 2020 (PPI-OT)

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

Quote

Orient Rental Modaraba (ORM), a subsidiary of ASJN Holding (Pvt) Ltd, is primarily engaged in rental and operation and maintenance of Gensets. The company enjoys patronage from established sponsor i.e. Orient Energy System. Operating with two revenue streams; Rental and, Operation and Maintenance (O and M), major chunk of revenue is derived from Ijarah Rentals, though the fee from O and M is fast increasing and has a higher share in the total profit. There are plans to further augment O and M revenue stream as the demand mix tilts towards the later.

The modaraba has been profitable on account of high utilization of rental fleet due to increasing demand for power generation equipment offered; mainly in manufacturing and textile sectors. Financial strength of the company remains adequate. The Modaraba intends to keep leveraging in the manageable range, not more than debt equity of 40:60, with zero reliance on COMs. The Rating incorporates strong business acumen comprising five experienced...