PACRA Maintains Entity Ratings of BBJ Pipe Industries Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- November 11, 2019 (PPI-OT)

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

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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 has expanded its production capacity in last years which may bode well in the future. Steel pipe industry has some vital players operating in the market yet BBJ has earned a good name in its respective niche. BBJ Pipes has completed the process of establishing its subsidiary - BBJ Steels which is wholly owned subsidiary; the company was legally bind to follow this under S.R.O 565 (I). During FY19, topline witnessed decline attributable to cessation of CRC sales.

However, CRC sales are expected to pick up in near future under BBJ Steels. BBJ Pipes' margins remained intact even though challenges remained on demand front. Volumes were largely maintained however working capital requirements enhanced which...