PACRA Assigns Initial Entity Ratings to Kassim (Pvt.) Limited

Kassim (Pvt.) Limited (“KPL” or “the Company”) is an emerging name in the competitive textile landscape and is principally engaged in the manufacturing and sale of garments and other value-added textile products. The Company operates as part of a group that has a historical presence in the textile space. The assigned ratings derive strength from the sponsoring entity’s established market presence and adequate business profile. KPL operates on the concept of a one-window solution whereby denim fabric is procured from the parent company and subsequently undergoes stitching for the sale of ready-made denim garments. The Company’s product slate primarily comprises denim jeans, denim shorts, and denim jackets. The entire topline is generated through export sales. The sales are geographically diversified.

Over the years, the Company’s topline has demonstrated a consistent growth trajectory, supported by healthy business volumes. During 1HFY26, the Company achieved a topline of PKR 4.3bln (FY25: PKR 11.7bln). Profitability indicators remained satisfactory, primarily supported by a prudent cost structure and operational efficiencies. Non-core income generated through the placement of surplus funds into Term Deposit Receipts (“TDRs”) continued to support the overall profitability matrix. Bottom-line performance remained exposed to moderate finance costs alongside the impact of changes in the prevailing taxation regime. Despite these challenges, the Company reported a profit after tax (“PAT”) of PKR 64mln during 1HFY26 (FY25: PKR 103mln).

The Company finances its working capital requirements through internally generated cash flows and short-term borrowings. The funding matrix comprises Export Refinance Facility (“ERF”) and Islamic Borrowings. While the financial risk profile remains adequate, slightly elevated inventory levels resulted in a stretched cash conversion cycle. Management expects this trend to improve over the forthcoming quarters. Coverage indicators remain within comfortable levels. On the strategic front, management remains focused on improving core business profitability through the onboarding of relatively stable international clients to diversify and strengthen its customer base.
.
The ratings remain dependent upon the Company’s ability to sustain its business profile through the preservation of profitability margins and continued growth in business volumes. Any deterioration in the financial risk profile will have a negative impact on the assigned ratings.

About the Entity
Kassim (Pvt.) Limited (“KPL” or “the Company”) was incorporated in July 2014 under the Companies Act, 2017, as a private limited Company. KPL is a wholly owned subsidiary of Kassim Textiles (Pvt.) Limited. The Company’s board comprises four members representing the sponsoring family. The position of the CEO is held by Mr. Amanullah Kassim. He has been associated with the Company for over three decades. He is assisted by a team of highly qualified and seasoned professionals.