Analyst
Muhammad Obaid
muhammad.obaid@pacra.com
+92-42-35869504
www.pacra.com
Applicable Criteria
Related Research
PACRA Maintain Entity Ratings of Kingcrete Builders
Rating Type | Entity | |
Current (30-Jun-18 ) |
Previous (29-Dec-17 ) |
|
Action | Maintain | Initial |
Long Term | BB- | BB- |
Short Term | B | B |
Outlook | Stable | Stable |
Rating Watch | - | - |
Kingcrete Builders is a partnership – led primarily by the Minhas family. The firm has exhibited renewed energy ever since the induction of the second generation. The roles of the partners are clearly defined. Kingcrete Builders was originally focused on construction and building works but recently the firm is increasing its focus on real estate development. Projects are in pipeline though revenue is volatile and so are the profits. The financial profile is constrained by stuck-up receivables and sizeable debt. Timely recovery of receivables and repayment of debt is essential.
The ratings are dependent upon the corporate governance principles, internal control systems and financial strength of Kingcrete Builders. Adherence of sound financial discipline while improving working capital management and strengthening debt servicing capacity through improving cash position is pivotal for the ratings. Improving the topline and sustaining it is also vital.
The ratings are dependent upon the corporate governance principles, internal control systems and financial strength of Kingcrete Builders. Adherence of sound financial discipline while improving working capital management and strengthening debt servicing capacity through improving cash position is pivotal for the ratings. Improving the topline and sustaining it is also vital.
About
the Entity
Kingcrete was established in 1976 by the founder of the firm, Major (R) Nawaz A Minhas, a civil engineer by profession. Significant building projects to its credit are the 18 storey Navy Heights Karachi, Mall of Lahore in Cantt, DHA O/A Levels School in Karachi, ICI Office Buildings in Karachi, Naval Headquarters in Islamabad, Safari Villas in Bahria Town Rawalpindi, Hyperstar in Islamabad and Lahore, CMH Rawalpindi, and rehabilitation of Pearl Continental Hotels in Karachi, Rawalpindi and Lahore.
Kingcrete, as a partnership, doesn’t have a formal board of directors structure. The company is being run by the partners as they have their respective roles in the management of the firm.