Press Release
VIS Reaffirms Entity Ratings of International Textile Limited
Karachi, June 16, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of International Textile Limited at ‘A/A2’ (Single A /Single 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 good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating remains ‘Stable’. Previous rating action was announced on May 06, 2025.
ITL was incorporated in 1985 as a private limited company. Subsequently, the Company was converted into an unlisted public limited company in 1989. ITL is a vertically integrated textile composite, engaged in various processes comprising spinning, sizing, weaving, processing, dyeing, bleaching of fabric and terry as well as manufacturing of fabric, terry and other textile products. ITL mainly exports to America and Europe. The three manufacturing units along with the registered office are located in Karachi.
Pakistan’s textile exports increased by 7.4% in FY25 to USD 17.8bn, supported by gradual recovery in global demand, while FY26 export performance has remained volatile despite signs of stabilization. The industry continues to shift toward higher value-added segments and sustainability-focused initiatives to enhance competitiveness. However, elevated energy and financing costs, freight volatility, intensified regional competition, the absence of notable rupee depreciation, and the shift toward the normal tax regime continue to pressure margins. Furthermore, the recent 100bps increase in the policy rate may place additional strain on textile manufacturers’ profitability, though the overall outlook remains cautiously optimistic amid gradual demand recovery.
The assigned ratings reflect the Company’s established operational base and diversified exposure across Terry, MJS and Garment segments, supported by moderate revenue growth and stable scale of operations despite regional competition and high dependence on the US market. The financial risk profile remains stable with manageable gearing and predominantly short-term debt structure. However, profitability remains under pressure due to elevated input costs, competitive export environment and limited pricing power, partially offset by a gradual shift toward relatively higher-margin segments. Liquidity is assessed as adequate, supported by stable coverage metrics and liquid buffers and improving debt servicing capacity relative to the prior year, although it remains below historical comfortable levels. Going forward, improvement in profitability and coverages remains a key rating sensitivity.
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://vis.com.pk/docs/VISRatingScales.pdf