Press Release
VIS Reaffirms Entity Ratings of Almoiz Industries Limited.
Karachi, November 3, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Almoiz Industries Limited (“AMIL” or “the Company”) at ‘A/A2’ (Single A / A Two). The 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., while the short-term rating of ‘A2’ denotes good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. The outlook on the assigned ratings is ‘Stable’. The previous rating action was announced on September 13, 2024.
AMIL operates as a diversified industrial enterprise engaged in the manufacturing and sale of sugar, steel, jaggery and dehydrated food products, supported by captive bagasse-based power generation. The Company operates through two sugar units located in Mianwali (Punjab) and Dera Ismail Khan (Khyber Pakhtunkhwa), a long-steel production facility, and a food dehydration plant, allowing multi-segment operational integration. AMIL is a part of the Almoiz Group, a diversified conglomerate with interests spanning sugar, steel, power, food, bottling and textiles.
The reaffirmation of ratings reflects AMIL’s diversified revenue base, strong market position in the northern region, and financial flexibility derived from its group association. The Stable Outlook captures steady topline performance and gradual recovery in profitability indicators during 9M MY25, supported by higher sugar realizations, consistent steel segment contribution, and effective cost control. Ratings are underpinned by the projected larger sugarcane crushing in the upcoming season and consequential improvements in financial performance.
During 9MMY25, the Company reported net sales of PKR 50.9b (MY24: PKR 51.8b) with a gross margin of 10.1% (MY24: 15.7%) and operating margin of 8.0% (MY24: 12.2%). Profit after tax increased to PKR 842m (MY24: PKR 536m), primarily driven by lower finance costs following monetary easing and partial debt reduction. The sugar segment remained the principal revenue driver, while the steel division maintained stable profitability amid cost pressures. The food segment, though currently small in scale, is expected to contribute positively over the medium term as operations expand.
Capitalization indicators improved, with gearing declining to 1.59x (MY24: 2.49x) and leverage moderating to 2.85x (MY24: 3.25x) by end-9M MY25 due to debt repayment and improved equity base. However, coverage metrics remain constrained, as DSCR fell to 0.59x in 9M MY25 (MY24: 1.08x) due to elevated working-capital requirements. Liquidity indicators were adequate, reflected in a current ratio of 1.07x, supported by available inventory and established banking lines.
The assigned ratings continue to be supported by AMIL’s integrated operations, experienced management, and group-level financial support. The Stable Outlook reflects expectations of sustained profitability improvement, better coverage, and enhanced financial discipline as the Company benefits from normalization in irrigation flows and stable demand recovery across sugar and steel segments.
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