PACRA maintains the entity rating of Siddiqsons Tinplate Limited

The rating of Siddiqsons Tin Plate Limited (“STPL” or the “Company”) is supported by a financially sound sponsor, whose sustained financial and operational backing has been instrumental in maintaining the Company’s stability and mitigating the risk of distress during periods of operational and market volatility. FY2024–25 proved challenging for the Company, with performance constrained by the continued availability of sales tax exemptions in the FATA/PATA regions, substitution of tin plates with Galvalume in food packaging, and low-priced imports of secondary tin plates, all of which negatively impacted demand and capacity utilization. In response, management undertook legal and regulatory measures, including filings with the National Tariff Commission, to protect the Company’s market position. To address these challenges, management formulated a strategy focused on driving business growth by managing exports to the U.S. market and reviving local sales. Accordingly, internal targets were set to improve capacity utilization and enhance profitability. However, the strategy yielded limited results. In addition, the CRC project faced significant delays due to non-delivery by suppliers, which led to an unfavorable international arbitration award and the recognition of a provision of Rs. 820.97 million for mediation. In this time of financial distress, the Sponsor remains optimistic, anticipating that successful mediation will safeguard the Company’s sustainability and support a promising future.
Amidst stated factors, the Company’s revenue declined by approximately 50% to PKR 2,023 million in FY25 (FY24: PKR 4,076 million), resulting in a net loss of PKR 255 million (FY24: PKR 2,058 million), while equity remained modest at PKR 907 million as of June 2025 (FY24: PKR 1,163 million), highlighting a limited capital buffer. The Company’s low-leverage capital structure limits financial flexibility and increases reliance on debt for ongoing project investments. Debt obligations are being met with support from its parent, Siddiqson Limited, supporting its credit rating.
The ratings are contingent upon the sponsor’s commitment to provide financial support in case of any cash flow shortfall, particularly amid operational pressures, subdued market demand, and project-related challenges.

About the Entity
Siddiqsons Tin Plate Limited, incorporated in 1996 and listed on the PSX, is primarily engaged in manufacturing and selling tin plates, cans, and steel products. The Rafi Family holds the controlling stake, with ~39.61% shares directly and ~15.49% indirectly through Siddiqsons Limited. The remaining shareholding 45% is held by individuals and financial institutions. The Board of Directors, led by Chairman Mr. Tariq Rafi, consists of seven members: two independent directors, three non-executive directors (all representing the Rafi Family), and two executive directors, including the CEO. Mr. Rafi is a seasoned business professional with a track record of successful ventures.