Karachi: Global Marketing Services (GMS), a prominent player in the clinical and medical laboratory equipment sector, has received an upgrade in its entity ratings from the Pakistan Credit Rating Agency (PACRA). This upgrade reflects the company’s robust performance and strategic expansions, even amidst challenging economic conditions.
According to The Pakistan Credit Rating Agency Limited, GMS has seen a significant increase in its revenues, reporting a 23% growth in the top line for FY24. This growth is supported by the company’s diverse range of products in diagnostics and medical solutions and its strong relationships with globally recognized principals such as Biomerieux and Abbott Medical. The Medical division, which focuses on cardiology and infection prevention technologies, contributed about 29% to the overall revenue and saw a notable increase in sales by 48%, attributed largely to the acquisition of a substantial product range from Abbott Medical.
The future for GMS looks promising as the company plans to corporatize its business divisions to streamline operations and enhance management focus. The process for the Medical division is already underway with the formation of “Global Medical Solutions (Pvt) Ltd.” The completion of this process is essential for the continued growth and efficiency of the operations, especially with the complexities involved in transferring business under the Drug Regulatory Authority of Pakistan (DRAP) regulations.
The company’s comprehensive internal audit and compliance functions ensure adherence to quality standards and mitigate risks associated with foreign exchange fluctuations, as GMS imports all of its inventory. Despite these challenges, the firm has maintained a non-leveraged capital structure and strong financial health, with stable cash flows and sound working capital management.
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PACRA Maintains Broker Management Rating for Trust Securities and Brokerage Limited Amid Revenue Growth
Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its broker management rating for Trust Securities and Brokerage Limited (TSBL), reflecting the company’s solid performance in the brokerage sector and its robust internal controls and governance framework. TSBL, which serves high-net-worth individuals and institutional clients, has shown significant growth in brokerage revenue and profit after tax over the past fiscal year.
According to The Pakistan Credit Rating Agency Limited, TSBL’s sustained rating is supported by the expertise of its management team and the strategic oversight provided by its primary sponsor. The company benefits from a comprehensive organizational structure and a strong governance framework that includes a dedicated risk management department. TSBL has also enhanced its control environment by outsourcing its internal audit functions and aligning its auditor category with the State Bank of Pakistan’s approved list, which has significantly improved oversight capabilities.
TSBL’s technology infrastructure integrates its front and back-office operations, enabling real-time reporting and minimal market risk due to the company’s conservative investment strategy. During the first nine months of fiscal year 24, TSBL achieved a market share of approximately 2%, with brokerage revenue increasing to PKR 164 million from PKR 121 million in the same period the previous year. The company’s profit after tax also rose markedly to PKR 84 million, up from PKR 22 million, driven largely by gains from the sale of short-term investments and increased brokerage income.
The company’s future ratings will depend on its ability to expand and retain market share and diversify its revenue base to bolster its competitive stance in the industry. Maintaining strong internal controls, retaining key management personnel, and effectively monitoring risks will also be crucial for TSBL’s ongoing success in the brokerage sector.