PACRA Upgrades Entity Ratings of Bikiya Industries Private Limited

Bikiya Industries Private Limited (the "Company") is a privately owned, family-run business, with Mr. Muhammad Saleem Bikiya as the majority shareholder. Serving as the CEO and Director, Mr. Bikiya brings over 40 years of industry expertise and plays a pivotal role in the Company's operations. The recent rating upgrade reflects key performance improvements, including robust topline growth, a low-leverage capital structure, and product diversification. Within a short span, the Company successfully established the "TUX" brand, solidifying its position as a leading name in the tissue paper market. As per management representation, it ranks among the top five tissue paper players in Pakistan. Expanding beyond its core offerings, the Company has also introduced new food products, demonstrating its commitment to innovation and responsiveness to evolving consumer preferences. This diversification is expected to strengthen its market presence and position it for future growth. A well-integrated supply chain, managed through its dedicated intender, International Business Management, further supports revenue expansion and profitability. In FY24, the Company reported revenue of PKR 2,598mln. Despite challenges such as rising raw material costs due to inflation and exchange rate fluctuations, it successfully improved profit margins. The net profit margin increased from approximately 5.9% in FY23 to 7.7% in FY24, while the operating profit margin rose from 10.6% in FY23 to 11.8% in FY24. These gains contributed to a bottom line of PKR 199mln in FY24. The Company's strong financial performance, resilience in navigating market challenges, and reinforced equity base continue to support its rating.
The ratings would remain dependent on the Company's ability to sustain the growth in the profitability while strengthening the equity base. Prudent management of the working capital and maintaining sufficient cash flows and coverages are essential for the ratings. Any significant change in margins and coverages will impact the ratings.

About the Entity
Bikiya Industries Private Limited was founded in 2014 with an initial share capital of PKR 50 million. Mr. Saleem Bikiya holds an 80% stake, while his sons, Mr. Usman Bikiya and Mr. Muhammad Bilal, each own 10%. The Company specializes in five key products: i) Pop-up Tissue Box, ii) Toilet Roll, iii) Pop-up Mini Tissue, iv) Hand Towel, and v) Party Pack, catering to a broad customer base. The Board of Directors (BoD) consists of three members, with Mr. Saleem Bikiya serving as the Chairperson.