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The Pakistan Credit Rating Agency Limited
Press Release

Date
03-Apr-25

Analyst
Muhammad Umer Munir
umer.munir@pacra.com
+92-42-35869504
www.pacra.com

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This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to PACRA

PACRA Maintains the Entity Ratings of International Business Management

Rating Type Entity
Current
(03-Apr-25 )
Previous
(03-Apr-24 )
Action Maintain Maintain
Long Term BB+ BB+
Short Term A3 A3
Outlook Stable Stable
Rating Watch - -

International Business Management ("IBM" or the "Company") is a key player in the paper and paperboard industry, actively serving customers and importers. Owned and operated by Mr. Saleem Bikiya, the head of the Bikiya family—renowned for its longstanding presence in the paper business—IBM operates as an indenting agency, facilitating connections between suppliers and importers while generating revenue through commissions. The family’s other business ventures include Madiha International (Pvt) Limited, specializing in paper, and Bikiya Industries (Pvt) Limited, focused on tissue products. IBM is backed by a team of skilled professionals dedicated to delivering value to its clients and ensuring the success of the sole proprietorship. The Company plays a crucial role in the quality assessment and evaluation of various paper and paperboard products in Pakistan. Its stable client base, including family-owned businesses, strengthens its market position. Given the modest scale of operations, the sponsor remains directly involved in management and governance. IBM maintains a low financial risk profile by relying on customer advances, reducing exposure to financial uncertainty. As an intermediary, the Company does not hold large inventories or assume significant credit risk. Its business model, centered on securing payments before fulfilling orders, ensures steady cash flow and minimizes the need for external financing.
In the fiscal year 2024 (FY24), IBM delivered strong financial performance, achieving an operating profit margin of 68.2% and a net profit margin of 67.1%. These impressive figures highlight the Company’s ability to generate substantial profits through its indenting services while maintaining low operational costs. Even after accounting for taxes and interest, IBM retains a significant portion of its earnings as profit.
The ratings are dependent on IBM's ability to sustain its position amidst a changing business environment and management’s ability to run the operations optimally. With the upcoming growth in the firm’s business; prudent financial discipline and implementation of a stringent control environment shall remain imperative.

About the Entity
IBM, established in 1993, is the sole proprietorship of Mr. Saleem Bikiya, an experienced business personnel serving more than 4 decades in the relevant field. He is working with the biggest groups in the paper industry including the Sinarmas group Indonesia known as Asia Pulp & Paper (APP). The main principle of sole proprietorship belongs to Indonesia and China.

The primary function of PACRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. PACRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. PACRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.