Press Release
VIS Reaffirms Entity Ratings of Comfort Knitwears (Pvt) Limited
Karachi, September 19, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity of ratings of Comfort Knitwears (Pvt) Limited (‘CKL’ or ‘the Company’) at ‘A-/A2’ (Single A Minus/A Two). 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 'A2' indicates a good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating is ‘Stable’.
Ratings derive comfort from CKL being the flagship entity of the Comfort Group and the sponsors’ extensive experience of over three decades in the textile sector. The Company is entirely owned by the sponsoring family, which plays an active role in its day-to-day management and operations. The head office and production facilities of CKL are located in Lahore.
In FY24, CKPL recorded moderate growth in sales supported by favorable pricing trends, while topline performance remained relatively stable during 9MFY25. Despite industry-wide pressures, the Company has been able to sustain its operating margins despite rising input cost challenges, reflecting prudent cost management and product mix optimization. Net profitability, however, was constrained by elevated financial charges and higher taxation. Debt servicing and liquidity profile remains sound. Capitalization ratios improved modestly by end-9MFY25 on account of long-term debt repayments and profit retention.
Going forward, management expects the impact of potential increases in production costs, particularly due to cotton price volatility, to be mitigated by growth in higher-margin export products. Accordingly, profitability and debt coverage indicators are expected to remain stable in FY26. With no major expansion plans in the pipeline, capitalization profile is also expected to remain intact. The Company’s ability to maintain revenue momentum, preserve margins under rising cost environment, and keep leverage indicators within an acceptable range will remain important for ratings going forward.
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