PACRA Maintains Entity Ratings of Engro Eximp Agriproducts (Pvt.) Limited
The ratings reflect the strength of ownership structure of the company: Engro Eximp is a wholly owned subsidiary of Engro Corp, the parent company and one of the largest conglomerate in Pakistan (rated AA+ by PACRA). The CEO of Engro Corp is also the Chairman of Engro Eximp. Ratings take comfort from the strong corporate governance framework of the group. Company’s revenue continue to hold its position after successfully achieving its break even in CY18. Profits have sustained since then, after suffering from huge losses in the past. As rice industry struggles with stiff competition in the international market, mainly with India, due to lack of Govt. support - basmati exports from Pakistan remained below its potential mark. Moreover, since Thailand has been competing in the international market with its premium rice variety, which could have an impact on Pakistani rice - including basmati - in near future. Rupee devaluation came in favorable, as dealing in a product – ‘basmati’- a high priced commodity assisted the company in improving its revenues. The financial risk profile has also recovered adequately while slightly dwindling due to high end debt profile.
The ratings are dependent upon growth in business volume and redemption of profits. Adherence to sound financial discipline while strengthening debt servicing capacity through improved cash position is vital for the ratings. Positive outcome of the future projects and sustainability of profits remain a catalyst for the business
Engro Eximp Agriproduct (Pvt.) limited, incorporated in 2010, is a wholly owned subsidiary of Engro Corp. The board of Engro Eximp is chaired by Mr. Ghias Khan – CEO Engro Corp. The board of Engro Eximp Agriproduct (Pvt) Ltd comprises three members and Mr. Khusrau Nadir Gilani is the CEO of Engro Eximp. Mr. Gilani is an experienced professional with an overall experience of more than two decades and has deployed his services at director level in Engro Eximp previously.