Press Release

VIS Reaffirms Entity Ratings of Kamal Textile Mills (Pvt) Limited

Karachi, July 21, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Kamal Textile Mills (Pvt) Limited at ‘A-/A2’ (Single A minus/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 ratings remain ‘Stable’. Previous rating action was announced on July 03, 2025.
Kamal Textile Mills (Pvt.) Limited (KTML) is a vertically integrated textile manufacturer with core operations encompassing knitting, dyeing, printing, processing, stitching, and finishing. The Company primarily caters to export markets across Europe, North America, and the Middle East with a diversified product range comprising home textile made-ups, garments, and processed fabrics. The assigned ratings continue to incorporate KTML’s long-standing presence in the industry, integrated operations, and established relationships with international clients.
Business risk profile of textile sector remained elevated amid persistent challenges driven by economic cyclicality, increased cost pressures, intense competition and structural constraints. The industry remains highly sensitive to demand fluctuations, exposing it to broader economic pressures.
The assigned ratings are supported by the Company's consistent topline growth; however, profitability margins remained thin due to elevated cost pressures and the absence of rupee depreciation during the review period.
Overall financial risk profile remained largely stable with no material changes wherein ratings incorporate adequate liquidity and debt service coverages. However, capitalization profile remained elevated. Going forward, maintaining liquidity and debt coverages will remain important from the ratings perspective.
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

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 July 21, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.