PACRA Maintains the Entity Ratings of Al Barka Fabrics Private Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- January 30, 2023 (PPI-OT)Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)QuoteThe assigned ratings of Al Barka Fabrics reflect the adequate positioning of the company in the Processed fabrics, home-textile, and made-up industry. Al Barka Fabrics is the flagship company of Al Barka Group. The group has a long-standing association with the textile sector. The group plans diversification in other sectors, going forward. The Company has been operational as a private company principally engaged in Textile Processing (Bleaching, Dying, Printing, and Stitching) and has been operating at an optimal level. The governance framework lacks independent oversight. The Company's management involves experienced professionals looking after the operations.The sales mix, dominated by exports, display steady improvement over the years. The Company enjoys an established customer base with several export destinations in Europe, South America, Africa, and the US. Revenues are majorly driven by exports where the company enjoys a long association with customers abroad. During FY22, the Company's revenues increased to PKR 5.6bln (FY21: PKR 4.3bln), primarily exports. Operating profits and net profitability recorded a good-sized improvement in the recent year. The net profitability also observed improvement whilst margins witnessed a similar trend as well. The import of raw materials has become a challenge to manage which is quite essential for continued operations.The management of the receivables is essential. The Company continues...