Lahore, May 17, 2022 (PPI-OT):Crown Textile’s export-oriented textile unit is primarily involved in production and sale of Men’s, Ladies and Children’s knitted garments. Currently, Crown Textile is engaged with and supplying directly to majority of private and famous retail brands with several export destinations, 80% from US and 20% from UK and European countries. The Company enjoys long-term associations with several esteemed brands abroad namely KHQ Investment LLC, Puma, SportLife Brands LLC, Terramar Sports Inc. and many others. The ratings derive strength from robust growth in topline in the recent year largely emanating from higher volumetric sales.

While gross margins decreased due to largely stagnant average selling prices amidst competitive export market, and increase in cost of sales. The Company has a good financial profile characterized by healthy coverages, moderately leveraged capital structure and improving working capital management. Going forward, Unit 3 of the Company will be operational in Jun22 which will bring in efficiency gains and improve margins. The affair of the Company are being overseen and manage directly by the owner of the Company. The ratings are dependent on the management’s ability to uphold the entity’s performance trend. Meanwhile, maintaining strong margins and coverages to fulfill financial obligations will remain critical.

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