Karachi: PACRA has assigned preliminary ratings to Airlink Communication Limited for its third Sukuk issuance worth PKR 4 billion, reflecting strong market fundamentals and significant growth in both mobile distribution and smartphone assembly in Pakistan.

According to The Pakistan Credit Rating Agency Limited, Airlink holds a prominent position in the mobile phone sector with a 22% market share in distribution and a strong partnership for assembling Xiaomi smartphones through its subsidiary, Select Technologies Pvt. Ltd. This strategic alliance contributed to a substantial increase in revenues, which reached PKR 129,742 million in FY24, driven by high sales volumes and escalating mobile device prices. The financial health of the company is further supported by a positive shift in its working capital cycle and robust cash flows.

Airlink’s strategy moving forward includes intensifying its focus on both assembly and distribution sectors, bolstering its market presence. The company has also entered an exclusive partnership with Acer Gadget Inc. to expand its product offerings to include laptops and tablets, leveraging its established distribution network across Pakistan. The company’s ongoing success hinges on maintaining financial discipline, particularly concerning working capital, as it navigates the rapidly evolving tech industry.