PACRA Maintain Entity Ratings of Techno Time Construction (Pvt.) Limited | Assigns Positive Outlook

Techno Time Construction (Pvt.) Limited (“TTC” or “the Company”) holds experience in the construction industry of Pakistan for nearly a decade. TTC has delivered multiple public and government projects of which completion spanned over years. TTC also works on different infrastructure projects in collaboration with different JV partners. TTC was originally focused on the road and bridges construction, but recently the Company has also started focusing on housing societies development. The Company is committed to adhering the highest standards of quality assurance, environmental management and health and safety as per the ISO certifications. During FY23, TTC sustains its topline in line with previous years and reported revenue of PKR 5.3bln (FY22: PKR 5.2bln, FY 21: PKR 5.7bln). The Company’s gross margins also remain range bound FY23: 25.5% (FY22: 25.4%, FY21: 24.8%), despite the increase in the overall cost of project completion due to inflationary pressures. The liquidity position of the Company is underpinned by adequate cash flow coverage and working capital management. The leverage indicators have remained at quite a comfortable level on a timeline basis, reflecting strong risk absorption capacity. The business funding needs are met by non-funded lines of banks and JV partner’s guarantees given on its behalf. Resultantly, it’s non-funded exposure is relatively less as significant support comes from leading JV partners in bearing non-funded exposure. The equity base of the Company is adequate, especially when compared with the non-funded obligations assumed by the Company. A positive outlook reflects sustained topline and margins despite inflationary pressures. The current and upcoming project basket is healthy, though the materialization of those remains important for the upgrade.
The ratings remain exposed to TTC’s presence in the cyclic sector owing to political instability, and a volatile economic environment. The ratings will remain dependent on upholding financial metrics involving the timely completion of key commercial projects without any significant cost and time overruns. In addition, sustaining the topline with collection efficiency will remain imperative. Improvement in governance is also important and needs to be strengthened.

About the Entity
Techno Time Construction (Pvt.) Limited was established by Mr. Atta Ullah Khan as a partnership firm in 2012 which got converted into a private limited company later in 2017. The executive and operational roles are held by Mr. Atta Ullah Khan, Mr. Zaka Ullah Khan and Mr. Samee Ullah Khan who are also the board members and shareholders. M/s. Imran Mehmood & Co. Chartered Accountants are the external auditors of the Company. The auditors expressed an unqualified audit opinion on the financial statements of TTC for the year ended June 30, 2023. The scope of work comprises mainly construction of highways, bridges and interchanges. TTC has also recently ventured into the development of housing societies. Significant projects to its credit include contract with Pakistan Atomic Energy Commission Society (Land Development of the Society) for PKR 2.7bln.