Press Release
VIS Upgrades Entity Rating of Ana & Batla Industries (Private) Limited
Karachi, August 29, 2025: VIS Credit Rating Company Limited (VIS) has upgraded the medium to long-term entity rating of Ana & Batla Industries (Private) Limited ('ABI’ or 'the Company’) from ‘BBB’ (Triple B) to 'BBB+' (Triple B Plus) while maintaining the short-term rating at A2 (A Two). The 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. 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’. Previous Rating action was announced on September 12, 2024.
ABI is a family-owned company, engaged in production and selling of personal hygiene products and has captured around 10% market share in baby diapers market in Pakistan. Business risk remains low due to inelastic demand of baby diapers. Baby diapers constitute roughly 90% of the Company’s revenue, though adult diapers, feminine hygiene products, and sanitary wipes, play a role in alleviating pressure on margins. Sponsor support exists in the form of non-interest-bearing sponsor loans, payable at the discretion of the Company that are considered part of equity, supporting capitalization profile.
Net sales increased in FY24 from FY23 due to slightly higher prices. However, topline contracted in 9MFY25 after the Company reduced stock disbursement to address a quality issue that was resolved by 4QFY25; normal dispatches resumed subsequently and expected to normalize going forward. Over the review period, the Company's debt coverage metrics improved on the back of adequate cash flows and entire repayment of long-term debt. An increase in current ratio and a shortened cash conversion cycle complimented liquidity profile. The Company's capitalization ratios also improved amid reduction in total debt and increase in equity base.
Upgrade in long-term rating reflects improvements in debt servicing profile, liquidity indicators and capitalization profile of the Company over the review period. Nevertheless, the ratings hinge on recovery in sales, increase in market share, maintenance of sponsor support and further improvement in overall financial indicators.
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