PACRA Maintain Entity Ratings of KSB Pumps Company Limited-Rating Watch Removed

KSB Pumps Company Limited (KSB Pumps) is Pakistan’s foremost manufacturer of industrial pumps, valves, and related services, operating under the ownership of KSB SE & Co. KGaA, Germany, one of the world’s leading pump manufacturers with operations in over 100 countries. The Company operates a state-of-the-art, MBK (Made by KSB) certified facility in Hassanabdal, ensuring adherence to global quality standards and allowing access to the parent’s technical expertise and production systems. Operating in a highly specialized segment with limited local comparables, KSB Pumps has maintained a dominant domestic presence supported by a diversified client base across industrial, infrastructure, and export markets. Over recent periods, the Company has strategically shifted toward an indirect business model for public-sector projects by engaging with private contractors instead of direct government clients, a move that has improved liquidity and reduced the risk of delayed receivables. Simultaneously, exports have gained renewed momentum, contributing around one-third of total sales, supported by the Company’s MBK certification that allows it to serve international KSB entities and other global clients. After a period of margin and liquidity strain, the Company has exhibited a strong recovery, with revenues rising by 14.8% year-on-year to PKR 3.3bln and net profitability improving to PKR 154mln in 1HCY25 compared to a loss in the same period last year. The successful rights issuance in 2024 significantly strengthened the Company’s capital structure, enabling full repayment of borrowings and resulting in a debt-free position with improved liquidity and financial flexibility. Continued equity participation and active strategic oversight by KSB Germany highlight sustained confidence in its Pakistan operations. These financial improvements and operational recovery collectively led to the removal of the rating watch, reflecting the Company’s restored profitability, strengthened liquidity, and overall stability. KSB Pumps’ alignment with group systems, access to technical and financial backing, and expansion of its SupremeServ service division reinforce its business resilience and earnings stability. Collectively, the Company’s strong governance framework, sound financial profile, and consistent operational execution underpin the assigned ratings and a stable outlook.
The ratings remain contingent upon KSB Pumps’ continued ability to build on its recent recovery and strengthen profitability, driven by improvement in core margins, expansion in export sales and higher-margin projects, and maintaining a diversified and sustainable revenue base. Continued focus on operational efficiency, prudent working capital management, and optimal capacity utilization will be essential to support margins and liquidity. Sustaining the Company’s debt-free position, along with stable coverages and effective use of group synergies for technological advancement and growth, will remain critical for ratings stability going forward.

About the Entity
KSB Pumps Company Limited (KSB Pumps) is a public listed company, incorporated in 1959 and listed on the Pakistan Stock Exchange in 1971. It is a subsidiary of KSB SE & Co. KGaA, Germany, which holds around 73% shareholding and is a global leader in the manufacturing of pumps, valves, and related systems. Headquartered in Lahore, KSB operates a state-of-the-art, MBK-certified manufacturing facility in Hassanabdal, producing a wide range of industrial pumps, valves, and castings, along with auto parts for clients such as Honda, Toyota, and Millat Tractors. The Company also provides aftermarket and service solutions under its SupremeServ division. The Board of Directors comprises eight members, chaired by Dr. Sven Baumgarten, while Mr. Imran Ghani serves as the Chief Executive Officer.