PACRA Maintains Entity Ratings of Etimaad Engineering (Pvt.) Limited

The ratings demonstrate Etimaad’s strength which emanates from its sustained operational history. The business has optimal mix of contracts in its domain and has managed to complete reasonable number of contracts in Pakistan. The slowdown in revenue for the current period has been primarily due to delay on some sizable projects and the company's performance was impacted by sluggish domestic market. The pipeline is healthy; therein for the sake of sustainable long term growth, management follows a balanced approach aiming to gain more share in different lines of businesses. Outstanding order book to be executed in the next 2-3 years, provides healthy medium-term revenue visibility. The entity is following a pyramid strategy; the top being mega projects (EPC), followed by construction and lastly maintenance related projects. The Company has a track record of over a decade with strong capabilities in executing turnkey projects, as reflected in repeat orders from customers. Company is adequately leveraged and the performance of the company rests with projects in hand and timely completion. The sponsors have demonstrated their commitment by operationally supporting the business by providing security and personal guarantees to obtain financial facilities. Meanwhile, strengthening of business development structure by inducting expert and experienced professionals is considered a key catalyst for upcoming projects.
Rating is dependent upon several contracts successfully completed and upcoming projects undertaken by management to streamline its business for improved profitability, which is pivotal for considerable growth.

About the Entity
Established by a team of professionals in May 2007, Etimaad is an integrated engineering and contracting company. The company is engaged in providing turnkey, retrofit and debottlenecking solutions for power/oil & gas sector, project management, general industrial construction (Civil, Mechanical, E&I), shut-down and turnaround services. Etimaad's two-members board is chaired by Mr Mohammad Sohail Shafique, who holds 25.6% shareholding, is an Engineer with more than two decades of experience with renowned organizations. Mr. Mazharuddin Ansari (late)'s family, holds 37.4% shareholding. Mr Farooq Hussain Mughal, President & CEO,is a fellow chartered accountant, holds 26.9% shareholding and is supported by a qualified team.