PACRA Assigns Initial Ratings to Beacon Impex (Pvt.) Limited PKR 1bln Sukuk- Sep-25

The ratings of Beacon Impex Pvt. Limited (“the Company” or “Beacon Impex”) reflect its strong standing in Pakistan’s textile sector, particularly as a leading player in the specialized underwear/bodywear segment. The Company operates as a fully vertically integrated knitwear garments manufacturer, with in-house processes spanning the complete textile value chain—including spinning, knitting, elastic production, dyeing, processing, cutting, and garment assembly. Bodywear garments constitute the foundation of the Company’s product portfolio, with boxers and briefs holding a significant share in its sales composition. Beacon Impex’s clientele includes globally recognized brands, with Puma contributing the largest share of revenue in FY25, followed by Hugo Boss, Levi’s, and Amazon.
The Company's top line expanded by ~45.5% during FY25, reaching PKR 52,639mln (FY24: PKR 36,274mln), primarily driven by improved business volumes. Beacon Impex is an export-oriented enterprise, as reflected in its sales mix, with Europe serving as its primary export destination. The Company's gross margins have declined, primarily due to raw material price pressures, inflation, wage increases, and a steady USD conversion rate.
The Company's financial risk profile is considered sound, supported by effective working capital management. Despite a reduction in operating profitability, cash flows remain adequate with moderate coverage levels. Net working capital requirements are predominantly financed through short-term borrowings, supplemented by internally generated cash flows. The intended sukuk issuance is aimed at diversifying the Company’s funding sources while strengthening the overall working capital financing structure. Beacon Impex maintains a leveraged capital structure, with approximately 63.9% of its debt comprising STB, while the remaining debt primarily consists of long-term conventional loans used to fund CAPEX in the textile value chain over the years.
The underlying instrument is secured by a ranking charge over the Company’s current assets. The Issuer must maintain a Debt Payment Account (DPA) under the lien of the Investment Agent. Payments will begin 60 days before maturity and continue fortnightly to ensure the full issue amount is available in the DPA five days before maturity. Principal repayment will be made in a bullet payment and profit will be paid quarterly

About the Entity
Beacon Impex commenced operations in 2005. The majority shareholding lies with the Company's CEO, Mr. Muhammad Shakeel Faridi, the director, Mr. Mudassar Zafar, and other sponsors. The Company has a capacity of ~7.4mln garments per month and knitted products. The Board comprises two BoDs, including the CEO, Mr. Muhammad Shakeel Faridi, and Mr. Mudassar Zafar

About the Instrument
Beacon Impex has issued Rated, Secured, Privately Placed, Short-Term Sukuk, carrying a markup of 6MK+1.50% with a tenor of 06 months. The purpose of the instrument is to finance the working capital requirements of the Company.