PACRA Maintains Entity Ratings of Nishat Mills 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 the established position of Nishat Mills as a premier export-oriented composite unit, with a sizable strategic portfolio and conservative capital structure. The Company enjoys prominence in the textile sector due to the wide array of its products, extensive outreach, and stable customer base. Meanwhile, the Company's revenues are consistently on a growing trajectory, a factor of continuous BMR activities, which has helped the Company in maintaining its leading position. The diverse and sizable investment portfolio, emanating from the Company's implicit Holdco status within the Group, generates a regular dividend stream, supporting core income.

Margins remained largely intact where growth witnessed in revenue. Segment analysis reveals enhanced reliance on home textile and dyeing - stronger margins. Nishat Mills continues to maintain a low leveraged capital structure and strong coverages signifying its very strong financial profile. The Company's association with Nishat Group as its flagship entity remains a key rating factor. Textile industry dynamics are prone to challenges posed by the third wave of the COVID-19 pandemic. The country's textile group exports, however, have...