Press Release
VIS Reaffirms Entity Ratings of Macter International Limited
Karachi, September 29, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Macter International Limited (‘Macter’ or the ‘Company’) at ‘A/A1’ (Single A/A One). Medium to long term rating of ‘A’ indicates good credit quality; protection factors are adequate. Risk factors may vary with possible changes in the economy. Short term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Outlook on the assigned rating is ‘Stable.’ Previous rating action was announced on August 02, 2024.
Macter is engaged in the manufacturing and marketing of pharmaceutical products. Operations are structured into two primary segments: branded generics and contract manufacturing. The Company is one of the larger contract manufacturers in Pakistan, particularly for multinational companies, offering a wide range of dosage forms including oral solids and liquids, parenterals (ampoules and vials), topicals, metered-dose inhalers, and ear and eye drops. Macter is a publicly listed entity with majority ownership vested in the Misbah family, while the remaining shareholding is held by SAAS Enterprises (Private) Limited, institutional investors, and the general public.
The business risk profile of the pharmaceutical industry is assessed as Medium to Low, driven by steady demand fundamentals and recent regulatory reforms that have supported margin recovery. Product concentration is moderate; the risk is partly mitigated by notable market shares of leading brands and the introduction of new therapies. Client concentration within key customers remains within acceptable levels. Manufacturing facilities are compliant with international cGMP and ISO standards, with dedicated capacity for cephalosporins, penicillins, and biologics. The governance framework remains adequate, with independent oversight at the board and committee levels and regulatory compliance reinforced by the appointment of a Shariah Advisor.
Profitability improved in FY24 and 9MFY25, supported by pricing deregulation, easing macroeconomic pressures, and higher export contribution, with gross margins increasing to 44.7% in the review period. Capitalization indicators remain sound, with gearing and leverage at 0.26x and 0.87x respectively, as of Mar’25. Liquidity is considered adequate, supplemented by unutilized short-term facilities of around PKR 3.9 bn. The outlook remains stable, underpinned by consistent demand, a supportive regulatory environment, and expectations of sustained improvement in profitability and cash flow generation. Going forward, maintenance of coverages, liquidity and capitalization profile while improving net margins will remain important for ratings.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf