Lahore, January 28, 2022 (PPI-OT):KAM International is a prominent textile venture of Mekotex group. The group has presence in textile, energy and water supply sectors through five established companies Mekotex, Meko Denim, Innovative Energy Solutions, Aquagen and KAM International. The Company has been operational as a single member company with history of more than two decades. The Company is principally engaged in the manufacturing and export of home textile (Bedding sets and variety of napkins, towels and table cloth).
Broad product slate has assisted the company in strengthening its position over the years. The Company’s management involves experienced professionals, aided by comprehensive reporting, looking after operations of the Company with complete autonomy. Its established business profile emanating from strong presence in the broader value-chain; enabling the company to manage volatility in the textile industry. Sales mix, dominated by exports, displays a steady improvement over the years.
The Company enjoys established customer base with several export destinations in European Countries (80%) and United States of America (20%). The management is planning further penetration in USA/ Canada market in the upcoming years. During FY21, the Company’s revenues recorded sizable increase to PKR 10.4bln (FY20: PKR 7.99bln), where 97% (FY20: 94%) vests with exports. Net profitability also witnessed improvement whilst margins remained strong.
The Company continues to maintain a low leveraged capital structure and strong coverages signifying its very strong financial profile. Going forward, further strengthening of business profile is eyed with the planned expansion. The ratings are dependent on sustaining the business profile of the Company by maintaining profitability and margins achieved from core textile operations. At the same time, sustainability of income and prudent management of the surplus funds are important.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com