Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the entity ratings of Kassim Textiles (Pvt.) Limited, reflecting its stable position within the competitive textile industry. Kassim Textiles operates a fully integrated setup, including ginning, spinning, and weaving, and boasts a substantial production capacity. The company’s diversified product portfolio, which encompasses a variety of fabrics and yarns, has supported consistent revenue growth and business sustainability.

In the fiscal year 2024, Kassim Textiles reported a significant increase in its topline, rising to PKR 31.2 billion from PKR 22.2 billion in the previous year. This growth was fueled by expanded production volumes to meet international demand. The fabric segment remains the largest revenue contributor, followed by the spinning segment. Indirect exports are exclusively generated through fabric sales.

The company’s profit margins have improved due to cost structure optimization and investments in energy-efficient alternatives. Despite facing challenges from increased finance costs and a shift in the taxation regime, the company’s bottom line has shown improvement, with profits rising to PKR 700 million in FY24 from PKR 391 million in FY23.

Kassim Textiles finances its operations through internal cash generation and short-term borrowings. Its financial risk profile is marked by a leveraged capital structure, but there has been modest recovery in coverage metrics due to improved cash flows. PACRA noted that the company’s ratings are contingent on its ability to maintain profitability and expand business volumes, warning that any deterioration in financial risk could negatively impact the ratings.