Press Release
VIS Reaffirmed Entity Ratings of Izhar Construction Private Limited
Karachi, June 02, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Izhar Construction (Private) Limited to 'A/A1' (Single A/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 high certainty of timely payment; liquidity factors are excellent and supported by good fundamental protection factors. Risk factors are minor. Outlook on the assigned ratings remains Stable. Previous rating action was announced on March 27, 2024.
Izhar Construction (Private) Limited (“ICPL” or “the Company”) was incorporated in Pakistan on May 13, 1960, under the repealed Companies Act, 1913 (now the Companies Act, 2017). The Company is primarily engaged in civil construction, provision of engineering services, and the production and sale of ready-mix concrete. The Company’s registered office is located in Lahore, while its ready-mix concrete production plant is situated at 36-KM Multan Road, Lahore. The company is presently working at various construction sites including at DHA Dolmen Mall Lahore, Indus Hospital, Mughal energy Limited, LUMS, Nova Care Hospital (Pvt) Ltd, Al Fateh E-Mall and etc. Additionally, ICPL owns agricultural farms located 6 KM along the Talagang–Kalar Kahar Road in Kalar Kahar.
The assigned rating reflects Izhar Construction (Private) Limited’s (ICPL) presence as an established player in the construction industry, supported by its affiliation with the diversified Izhar Group. The Company’s proven track record and healthy portfolio of private-sector projects, including commercial and industrial developments, underpin its business strength.
Business risk is considered moderate to high, given the cyclical nature of the construction industry, exposure to material price volatility, inflation, and high correlation with overall health of the economy. However, ICPL’s focus on private sector clients and operational flexibility provide coverage against these challenges.
On the financial front, ICPL has demonstrated sustained revenue growth and stable profitability, driven by higher contracts volume, cost control, and sustained margins. The Company maintains a fully equity-funded capital structure with no external borrowings, resulting in zero gearing and strong capitalization metrics. Liquidity is sound, supported by positive operating cash flows, efficient working capital management, and absence of debt servicing pressures.
Going forward, the ratings will remain sensitive to the prevailing uncertainty in the country’s political and economic environment, which is impacting the construction and real estate industry, along with the timely execution of the Company’s ongoing projects.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporate Rating
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf