PACRA Upgrades Entity Ratings of Warble (Pvt.) Limited

Warble (Pvt.) Limited’s (“Warble” or “the Company”) rating is underpinned by the consistent support it receives, owing to the synergistic benefits from the Group. The Company’s prudent decision‐making framework, in tandem with its healthy topline, is reflected in the entity’s ratings. Further, operational synergies have led to increased margins and augmented profitability. Warble primarily produces and sells three different segments of agri‐based products, namely I) Pesticides, ii) Fertilizers, and iii) Seeds. The raw materials for pesticides are procured predominantly from China and Europe, while the raw materials for fertilizers are procured locally. The Company maintains a well‐integrated network of over 750 franchises nationwide. Moreover, the Company expanded its product portfolio by incorporating locally produced biofertilizers to become cost-effective and efficient substitutes for urea and DAP-based fertilizers. Additionally, the Company is diversifying its revenue stream in the construction business through a group-owned company (i.e., Warble Constructions). To effectively mitigate business risks, the Company employs a streamlined procurement approach. It reinforces its business presence in the Punjab region, enabling the Company to sustain a healthy top line with margins and, in turn, profits to remain intact. However, fluctuations in raw material prices owing to PKR depreciation and the fragmented & competitive nature of the pesticide industry embed challenges. On the financial risk front, improved liquidity and debt coverage indicators support the Company's financial position. Further, the ratings continue to derive strength from the long‐standing experience of the sponsors, who have established a track record for operations and a strong competitive position.
The ratings are dependent upon an improvement in the business and financial profile of the Company. Any deterioration in the topline, margins, or cashflows remains critical to the ratings. The Company’s sustained business performance remains vital to the ratings.

About the Entity
Warble (Pvt.) Ltd. ('Warble' or 'the Company') was incorporated in 1995 as a Private Limited Company, offering a variety of agri-based productions ranging from urea and DAP-based fertilizers to pesticides and seed varieties. The Company’s plant is located at Industrial Estate Multan. Warble operates through a network of over 750 franchises spread across the country. The Company is majority-owned by Mr. Masood Ur Rehman (~46.85%) and Mr. Zain Iftikhar (~43.83%); the rest of the shares vest between Mr. Atta ur Rehman (~7.69%), Ms. Ghazala Asmat Ghazal (~1.63%) (w/o Ch. Iftekhar Niaz– Group Chairman). Mr. Masood ur Rehman, the BoD's Chairman and the CEO of the Company, is assisted by a team of professionals.