Press Release
VIS Reaffirms Entity Ratings of Agriauto Industries Limited
Karachi, December 30, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Agriauto Industries Limited at ‘A-/A1’ (Single A minus/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 ratings remain ‘Stable’. Previous rating action was announced on November 26, 2024.
Incorporated in 1981, Agriauto Industries Limited (‘AGIL’ or ‘the Company’) is engaged in the manufacturing and sale of components for automotive vehicles, motor cycles and agricultural tractors. The Company has established long-term technological collaborations with leading international parts manufacturers. Moreover, AGIL also serves as the holding Company of Agriauto Stamping Company Limited, which is engaged in stamping of sheet metal parts, dies and fixtures for the automobile sector. The registered office of the Company is situated in Karachi, while its manufacturing facility is located at Hub Chowki Distt. Lasbella, Balochistan.
The assigned ratings reflect AGIL’s strong sponsor profile as part of the House of Habib (HoH) group, a well-established conglomerate in Pakistan with diversified business interests. The Company has over four decades of experience in the auto parts industry and maintains long-term technical collaborations with international parts manufacturers, providing it with a competitive advantage.
The auto parts industry carries a ‘medium to high’ business risk profile due to its dependence on domestic automobile production, which is cyclical and susceptible to regulatory changes. Nonetheless, recent recovery in automobile demand has supported AGIL’s financial performance. The Company’s financial profile is further strengthened by demand from key player, Indus Motor Company Limited, which contributes a significant portion to its topline.
AGIL’s financial risk profile is underpinned by a conservative capitalization structure and moderate improvement in profitability during FY25 and 1QFY26, aided by dividend income from its subsidiary, though the core operations remain underperforming. However, liquidity indicators remain constrained, with coverage metrics under pressure. Going forward, continued improvement in cash flows and efficient working capital management will remain crucial from the ratings’ perspective.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf