Karachi: Harappa Solar Private Limited, a significant player in Pakistan’s renewable energy sector, has retained its robust ratings from The Pakistan Credit Rating Agency Limited (PACRA) due to its solid operational and financial performance.

According to The Pakistan Credit Rating Agency Limited, “The maintained ratings reflect Harappa Solar’s effective operational outputs and favorable financial indicators.” The company, an 18MWp solar power plant, has exceeded capacity factors and shown growth in net revenues, driven by a secure 25-year energy purchase agreement with a Power Purchaser that includes sovereign guarantees on payment obligations.

During FY24, Harappa Solar generated 30,397 MW of electrical output, an improvement in operational efficiency compared to the previous years. This performance translated into increased net revenues of PKR 926 million for FY24, up from PKR 840 million in FY23 and PKR 602 million in FY22, bolstering both gross and operating margins.

The company’s financial structure has also seen positive changes, with significant repayments of both local and foreign loans, reducing its leverage to 52.8%. This is complemented by a strong liquidity profile and timely payments from the Power Purchaser, which have sustained satisfactory debt servicing. The future financial outlook remains stable with expected low gearing and leverage levels due to continued loan repayments and operational improvements.

Harappa Solar, established in September 2014 and achieving commercial operations in October 2017, is part of a broader portfolio of renewable projects owned by notable industry figures and operates under the Renewable Energy Policy 2006.