Muhammad Noor Ul Haq
PACRA Maintains Entity Ratings of Kingcrete Builders
The ratings reflect the Kingcrete’s history of four decades and the extensive experience of partners in the civil construction and engineering business. The firm has exhibited renewed energy ever since the induction of the second generation. Kingcrete Builders was originally focused on construction and building works but recently the firm has expanded its wings and is working on multiple projects of varying sizes and nature. Adequate pipeline of projects to be executed next 12-24 months, provides sizable revenue visibility for the medium term. As the entire income is tender-based, revenue depends on the firm's ability to bid successfully. Therefore the working capital requirement also depend on the project in execution; wherein performance guarantees are essential. This leads to a high dependence on bank lines to fund working capital. The expansion in business is expected to reflect positively on the future risk profile of the entity.
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.
Kingcrete was established in 1976 and since its inception has undertaken projects in all major fields of civil engineering and allied electrical works. Kingcrete Builders is registered as a partnership concern with five partners. The founder-Mr Nawaz A Minhas and his brother, Mr Ijaz A Minhas are senior partners, with his two sons, Mr M Nadir Minhas and Mr M Sikander Minhas, and his relative Mr Saeed A Malik, as partners of the firm. The registered office is situated at 2-C south Park Avenue, Phase-2, Defense Housing Authority, Karachi.