The Pakistan Credit Rating Agency Limited
Press Release
a

Rating Action
Lahore: (11-January-2007)
    PACRA Maintains The Ratings of Nishat Mills Limited (NML)
 

 
Analyst
Sumaira Fazal
(+92-42-586 9504)
sumaira@pacra.com

 

 

 









 

 





 

 

 

Disclaimer
This press release is transmitted to you for this sole purpose of dissemination through your newspaper/magazine/agency. The press release may be used by you in full or in part without changing the meaning or context thereof but with due credit to PACRA. However, PACRA has the sole right of distribution of its press releases for consideration or otherwise through any media.

  

The Pakistan Credit Rating Agency (PACRA) has maintained the long-term rating at “A+” (Single A Plus) and the short-term rating at “A1” (A One) of Nishat Mills Limited (NML). These ratings denote a low expectation of credit risk emanating from a strong capacity for timely payment of financial commitments.

NML’s ratings reflect its strong risk absorption capacity emanating from a sound capital structure supported by substantial revaluation surplus on the company’s equity investment portfolio. The company continues to pursue its strategy of diversification, both in terms of products and markets, while improving production efficiency and gradually increasing the proportion of value added products in the sales mix.  This strategy helps NML in maintaining its strong competitive position and in turn, low level of business risk.

About the company: Nishat Mills Limited is the single largest textile composite unit in Pakistan. The company is a leading exporter of textile products having extensive spinning, weaving, dyeing, printing, finishing and stitching facilities at Faisalabad, Sheikhupura, Ferozewatwan and Lahore. NML is the flagship company of the Nishat Group – one of the largest conglomerates with interests in the textiles, cement and financial sector. The Nishat Group family members and associated concerns collectively hold around 47% of NML’s equity.

NML’s product range is composed of various varieties of yarn, grey fabric, processed fabrics and made-ups. The proportion of processed fabrics and made-ups in the total sales mix is currently less than half, but this is steadily increasing. The bulk of its earnings are export-based.

The company is making strategic investments in a paper sack unit and a garment factory. Returns on these investments would be in the form of dividends which are expected to start accruing in the medium-term.
 
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