PACRA Maintains Entity Ratings of Warble (Pvt.) Limited

Warble (Pvt.) Limited’s (“Warble” or “the Company”) rating is underpinned by the consistent support it receives, owing to the synergistic benefits from the Group. The Company’s prudent decision‐making framework, in tandem with its healthy top line, is reflected in the entity’s ratings. Further, operational synergies have led to increased margins and augmented profitability. Warble primarily engages in the production and sale of three different segments of agri‐based products, namely I) Pesticides ii) Fertilizers iii) Seeds. While the raw materials for pesticides are essentially procured predominantly from China and Europe while raw material for fertilizers is procured locally. The Company maintains a well‐integrated network of over 750 franchises spread across the country. Moreover, in lieu of relying heavily on imported products, the Company expanded its product portfolio by incorporating locally produced biofertilizers that are a cost-effective and efficient substitute for urea and DAP-based fertilizers. Additionally, the Company is diversifying its revenue stream in the construction business through group owned company (i.e., Warble Constructions). During FY23, the pesticide sector in Pakistan faced substantial challenges, marked by catastrophic events i.e., heavy rainfall and floods. Resultantly, the agri-chain incurred considerable losses, particularly affecting the major crops. To effectively mitigate risks the Company employs a streamlined procurement approach and reinforces its business presence in the Punjab region. Sustaining a healthy top line, the Company introduced new products to the market. Margins and in turn profits remain intact. However, fluctuations in raw material prices owing to PKR depreciation and the fragmented & competitive nature of the pesticide industry embeds challenges. On the financial risk front, improved liquidity position and debt coverage indicators support the financial matrix. Further, the ratings continue to derive strength from the long‐standing experience of the sponsors established a track record for operations and a strong competitive position.
The ratings assigned to Warble take into account a moderate business risk profile; the sponsor strength emanates from Allahdin Group’s vast and prolonged business interests in fertilizers, pesticides and other commodities. Going forward, ratings remain sensitive to the achievement of projected revenues, maintenance of debt servicing ability and enhancement in coverages.

About the Entity
Warble (Pvt.) Ltd. ('Warble' or 'the Company') was incorporated in 1995 as a Private Limited Company, offering a variety of agri-based productions ranging from urea and DAP based fertilizers, to pesticides and seed varieties. The Company’s plant is located at Khanewal. The Company has over 750 franchises spread across the country. The Company is majority owned by Mr. Masood Ur Rehman (~46.8%) and Mr. Zain Iftikhar (~43.8%), rest of the shares are vested between Mr. Atta ur Rehman (~7.7%) Ms. Ghazala Asmat Ghazal (~1.6%) (w/o Ch. Iftekhar Niaz– Group Chairman). Mr. Masood ur Rehman, the BoD's Chairman and the CEO of the Company, and he is assisted by a team of professionals.