PACRA Maintains Entity Ratings of Jamal Pipe Industries (Pvt.) Limited

Jamal Pipe Industries (Pvt.) Limited ("JPI" or "the Company"), a family-operated business with over four decades of operational history, is engaged in the manufacturing of pipes and allied products. The Company’s product portfolio is well-diversified and includes black line pipes, galvanized line pipes, various types of poles (such as octagonal, tubular, and street light poles), and guardrails. A significant portion of the revenue is derived from pipes and guardrails, while the remainder comes from the pole segment, which also includes a small contribution from galvanized iron pipes. The Company’s product diversification is considered a positive aspect. Increasing revenue contributions from each segment would further reduce concentration risk and strengthen the overall business risk profile. The steel pipes and tubes industry remains vulnerable to broader macroeconomic factors such as exchange rate volatility, prices of international raw materials largely imported, and financing costs. Despite these sector-wide challenges, JPI’s performance during the period under review has been notably positive. Although the industry has seen volumetric pressure due to economic slowdown, JPI has managed to maintain a healthy order book, supported by strong relationships with key corporate clients.
In 6MFY25, JPI recorded sales revenue of approximately PKR 2,052 million, compared to PKR 1,596 million in the same period last year, reflecting a growth of around 29%. Gross profit margin improved to 10.7% from 9.9% in 6MFY24, while operating margin rose to 7.7% from 6.2%, and net profit margin increased to 4.4% from 3.1% over the same period. The growth in profitability was largely attributed to the easing of import restrictions, which enabled the Company to resume importing raw materials at better prices, reducing input costs compared to earlier local procurement. On the financial side, JPI maintains a conservative capital structure with no long-term borrowings, relying entirely on short-term financing to support its working capital needs. As of 6MFY25, the Company’s leverage stood at 22.4%, compared to 29.7% in 6MFY24 and 6.5% in FY24. EBITDA to finance cost coverage also improved, standing at 9.5x in 6MFY25 versus 7.5x in 6MFY24, reflecting stronger earnings and better cost management. Sufficient unutilized working capital lines provide further financial cushion.
Given the improved profitability, enhanced operational efficiency, and disciplined financial management, the Company's outlook has been revised to “Positive,” highlighting confidence in JPI’s continued performance and stability going forward.
The ratings reflect JPI’s adequate market presence within a highly fragmented industry. The Company follows a clear policy of maintaining a debt-free long-term capital structure, with its borrowings comprising solely of short-term financing to support working capital requirements.

About the Entity
Jamal Pipe Industries (Pvt.) Limited was incorporated in 1981 and is wholly owned by the sponsoring family, with equal shareholding held by the Mian brothers — Mr. Mian Farooq Ahmed and Mr. Mian Shakeel Ahmed. The Company is overseen by a two-member Board of Directors, with Mr. Farooq Ahmed serving as Chief Executive and Mr. Shakeel Ahmed as Executive Director. Both directors possess the requisite technical expertise to effectively manage and oversee operations. Mr. Zubair Ahmed, a Chartered Accountancy finalist, serves as the Chief Financial Officer and has a long-standing association with the Company.