Press Release

VIS Reaffirms Entity Rating of Mustaqim Dyeing & Printing Industries (Private) Limited

Karachi, September 3, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Mustaqim Dyeing & Printing Industries (Private) Limited at ‘A-/A2’ (Single A Minus/A Two). The medium to long-term rating of ‘A-’ denotes good credit quality; Protection factors are adequate. Risk factors may vary with possible changes in the economy. The short-term rating of ‘A2’ signifies good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating is Stable. The previous rating action was announced on May 15, 2024.

Mustaqim Dyeing & Printing Industries (Private) Limited (MDPIPL or the Company), a member of the Gani & Tayub (G&T) group, was founded in Pakistan on May 15, 1991, as a Private Limited Company. Specializing in yarn, home textiles, socks, and knitted fabric, MDPIPL serves both domestic and international markets.

Ratings take into account strong sponsor profile of G&T group, a conglomerate with presence in textile, packaging and pharma. Ratings also incorporate the sponsor commitment wherein sponsor has increased its equity contribution as sponsor loan, in order to support financial profile of the Company. Topline growth in FY24 and the ongoing year was supported by higher sales volumes. However, declining gross margins, higher operating expenses and increased finance costs resulted in a marginal net loss. This has also resulted in a notable decline in cashflow and debt coverage metrics. However, liquidity profile remained adequate with manageable capitalization structure. Going forward, management aims to focus on higher-margin orders to return the bottom-line to profitability. Ratings will remain sensitive to the successful recovery in profitability and debt coverage metrics, while continued sponsor support will also remain important.

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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright September 03, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.