PACRA assigns Initial Entity Ratings to Airlink Communication

The ratings denote Air Link’s adequate operational sustainability underpinned by its solid market position, balanced earnings contributions from its mobile business, as well as its strong financial profile. Association with strong brands, Huawei & Samsung, enables Air Link to propel the growth wheel forward.

Over the last few years, the Company has improved its business profile. During FY17, the company’s topline witnessed ample growth mainly because of increase in Samsung retail business and exports. FCFO of the company witnessed decent improvement owing to higher EBITDA. Air Link has lately been converted into a private limited company with only a two member board. The company’s import driven business model is secured mostly because of 100% cash margin. The company's financial risk profile is adequately covered. Ratings incorporate that Air Link operates in a fast moving market where timely introduction and sale of products is crucial.

The ratings are dependent on the company’s ability to strengthen its market position, gain in terms of EBITDA and profitability margins. Any deterioration to margins and/or cash flows remains critical to the ratings. Upholding strong governance is essential.

About the Entity
Air Link incorporated in 2012, is a private limited company. The Company is principally involved in distributing mobile phones of two leading brands in industry; Huawei and Samsung. The Company is owned by sponsoring family. Mr. Shaukat Hayat Piracha is Chairman and Mr. Muzaffar Hayat Piracha is the CEO of the company. Mr. Muzaffar Hayat and Mrs. Saliha Basit are board members. Mr. Nusrat Mehmood, the CFO, looks after the finance function at group level. Mr. Asim Mehmood, the head of planning and sales, is involved in the company’s all key business decisions.