Press Release
VIS Reaffirms Entity Ratings of Syntronics Limited
Karachi, June 12, 2026: VIS Credit Rating Company Limited (‘VIS’) has reaffirmed the entity ratings of Syntronics Limited (‘SL’ or ‘the Company’) at 'BBB+/A2' (‘Triple B Plus/A Two’). Medium to long term rating of 'BBB+' indicates adequate credit quality; Protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur in the economy. Short-term rating of 'A2' suggests good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous ratings action was announced on May 23, 2025.
Syntronics Limited was incorporated in 1998 as a public unlisted company. The Company is principally engaged in the manufacturing and sale of polypropylene sacks, woven sacks, fabrics, stitched bags, and other flexible packaging products. Its registered office is located in Islamabad, while manufacturing facilities are situated at Hattar Industrial Estate and Gadoon Amazai, Khyber Pakhtunkhwa. The Company is associated with the Premier Group, with shareholding concentrated among sponsors and associated entities.
The assigned ratings reflect Syntronics Limited’s established presence in the PP (Polypropylene) woven sacks and flexible packaging segments, association with the Premier Group, and diversified customer base across cement, flour, food, feed, fabric and allied sectors. The management is led by an experienced team and the Company has conducted an environmental audit, indicating general compliance with applicable environmental requirements. Ratings also incorporate the Company’s focus on consolidating production capacity and improving utilization in value-added product lines.
Performance remained under pressure in FY25 due to lower sales volumes, and procurement-related disruptions; however, improvement was noted during 9MFY26, supported by margin recovery, lower finance cost and return to profitability. Operationally, the sacks segment remains the key contributor, while BOPP stitched bags/FFS films continue to provide room for improved capacity absorption. Planned solarization is expected to support cost efficiencies going forward. Capitalization indicators weakened in FY25 due to net losses, arising out of a one-off dividend payout against retained earnings, which reduced Tier-1 equity, though some improvement was witnessed during 9MFY26 on account of lower short-term borrowings. Liquidity profile remains adequate, supported partly by ongoing recovery of tax refunds from the government. However, elongated cash conversion cycle, sizeable working capital requirements and aging of trade debts remain key monitorable areas.
Going forward, the stable outlook remains dependent on the Company’s ability to sustain the recovery witnessed during 9MFY26, improve capacity utilization, enhance debt coverage indicators, and maintain leverage, liquidity and working capital cycle within manageable levels.
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