Karachi: VIS Credit Rating Company Limited has upgraded the entity ratings of Thatta Cement Company Limited (TCCL) to ‘A/A-2’ from ‘A-/A-2’, reflecting good credit quality with stable prospects and a robust likelihood for timely repayment of short-term obligations.

According to VIS Credit Rating Company Limited, the upgrade is supported by Thatta Cement’s sustainable improvement in financial performance during FY24, marked by increased profitability and liquidity. Notable financial strides include higher revenue driven by increased dispatches and cement prices. A strategic shift to domestic coal and the launch of a 3.5 MW solar energy project significantly lowered production costs, enhancing profitability margins. Additionally, TCCL exhibits strong debt servicing capabilities and maintains a conservative capitalization with no long-term debt and minimal short-term borrowings.