LAHORE: The Pakistan Credit Rating Agency Limited (PACRA) has maintained the entity ratings of Newage Cables (Pvt.) Limited, reflecting the company's stable position in Pakistan's cable manufacturing industry. Newage, a significant player in the sector, derives most of its revenue from conductor sales to government transmission and distribution companies, holding a 22% market share predominantly in the central region.

According to The Pakistan Credit Rating Agency Limited, Newage's ratings consider its established industry stance, backed by a robust institutional presence in the power and infrastructure sectors. The company's longstanding operating history and the extensive experience of its sponsors further bolster its ratings. The cable manufacturing industry in Pakistan, closely tied to infrastructure development, is anticipated to see steady growth following a period of slowdown due to economic challenges. This resurgence is expected to be driven by ongoing power sector projects and expansion in housing and industrial construction.

As of Fiscal Year 2025, Newage reported a rise in net revenues to PKR 35.1 billion, an increase from PKR 26.3 billion in the previous year. This growth was aided by dollar-denominated project revenues funded by the Asian Development Bank, offsetting currency fluctuations. Despite limited export sales to countries like Sri Lanka, Qatar, and the UAE, gross and net margins were recorded at 11.9% and 3.1% respectively. The company manages financial risks through stable cash flows, moderate leverage, and strong banking relationships, though extended receivable cycles pose challenges to working capital efficiency.

The ratings remain susceptible to commodity price volatility and infrastructure demand cycles, with emphasis on improving margins and receivable management. Future strategies include business diversification and governance enhancement, essential for sustaining growth.