PACRA Maintains Entity Ratings of Sefam (Private) Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- May 17, 2021 (PPI-OT)

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

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The ratings reflect Sefam (Pvt.) Limited's reputable image as one of the leading players in the clothing/home textile retail industry with several established brands. The Company operates a complete range of clothing brands targeting various segments of the retail market. The major portion of the Company's raw material is sourced from group companies, which allows efficient supply chain management while ensuring quality.

Ratings positively take in to account the track record and presence of experienced and professional management team which possesses considerable experience in the retail business. With Bullish Sector dynamics, the Company has managed to sustain growth in revenues and margins in the retail market. Moreover, the Company has resorted to online sales, which constitute a small part of its overall revenues. Considering the gradual recovery in operations backed by the lifting of the lockdown, profitability is expected to increase in FY21. Liquidity profile of the Company is considered strong with manageable working capital cycle and sufficient cash flows to meet outstanding obligations. The capital...