Karachi: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the entity ratings of Meskay and Femtee Trading Company (Pvt.) Limited, a prominent player in the country's rice export market. The company holds a significant position due to its large processing capacity and diversified export markets, despite recent financial constraints.

According to PACRA, Meskay operates a vertically integrated production system, largely export-oriented, with exports accounting for approximately 97% of its revenue in the fiscal year 2025. The company benefits from experienced leadership and a strong governance framework. However, its financial performance in FY25 was marked by a 42% year-over-year contraction in revenue, primarily from rice sales, which accounted for 86% of total revenue. The financial challenges were further exacerbated by increased operating expenses and elevated finance costs, compressing the net profit margin to 0.3%.

The company faces refinancing and liquidity risks due to its heavily short-term borrowing-dependent capital structure. The industry backdrop adds to the pressure with heightened global competition, elevated freight costs, and geopolitical disruptions. The ratings rely on the company's ability to maintain business volumes and financial stability amid these challenges.