Press Release
VIS Reaffirms Entity Rating of Naveena Steels Mills (Pvt) Limited
Karachi, August 04, 2026: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Naveena Steels Mills (Pvt) Limited (‘NSML’ or ‘the Company’) 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 a good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating remains ‘Stable’. Previous rating review was announced on July 07, 2025.
NSML is a Private Limited Company incorporated in 2017. The Company is engaged in the manufacture and sale of steel bars and billets. The registered office and production plant are located in Karachi along with sales and marketing offices in Lahore, Multan and Peshawar.
Risk profile of Pakistan’s long steel sector remains medium to high, owing to its cyclical demand profile, intense competition, and sensitivity to raw material prices and energy costs. Demand remains closely linked to government spending on infrastructure construction, with sector overall performance influenced by broader economic conditions and investment activities. Demand remained constraint FY25 due to constraint construction activities. Going forward, easing financing conditions and improving macroeconomic indicators are expected to support gradual recovery in the sector’s fundamentals. However, sector’s profitability is expected to remain sensitive to fluctuations in imported raw material prices, exchange rate movements, energy tariffs, and competitive pressures.
The assigned ratings reflect improvement in NSML’s financial risk profile during FY25, driven by the recovery in profitability and improved operating performance. The resulting increase in internal cash generation, coupled with prudent working capital management, supported a reduction in debt utilization, strengthening the Company’s capitalization, leverage, liquidity and debt coverage indicators. The positive trajectory was maintained during 9MFY26, with further improvement in revenue, profitability and key financial risk indicators. The ratings also derive comfort from NSML’s diversified customer base and expanding geographic presence, which enhance business resilience and support long term growth.
Going forward, the ratings will remain sensitive to the Company’s ability to sustain its operating performance, maintain prudent leverage and liquidity metrics, and navigate cyclical demand conditions and volatility in raw material prices. Continued improvement in domestic economic conditions and construction activity will also remain important to the Company’s credit profile.
For further information on this rating 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://vis.com.pk/docs/VISRatingScales.pdf