Press Release
VIS Reaffirms Entity Ratings of Agriauto Stamping Company (Private) Limited
Karachi, June 23, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Agriauto Stamping Company (Pvt) Limited (‘ASC’ 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 Good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous rating action was announced on April 1, 2024.
ASC is a wholly-owned subsidiary of Agriauto Industries Limited (AGIL) and is engaged in the manufacture and sale of sheet metal stamping parts, sub-assembly operations, dies/checking fixtures/jigs. ASC specializes in assembling and stamping of high tensile parts for automobiles, with technical collaboration with M/S. Ogihara (Thailand) Co. Ltd. The Company’s plant is situated in Pakistan Steel Down Stream Industrial Area, Port Qasim, Karachi, with the corporate office located in Shahrah-e-Faisal, Karachi.
The assigned ratings incorporate the strong sponsor profile of House of Habib (HoH) and ASC being a subsidiary of Agriauto Industries Limited (AGIL) which has more than 4 decades of experience. Also, ASC is a prominent manufacturer of Sheet Metal Stamping parts and Catalytic Converters in the auto parts industry. ASC has long-term technological collaborations in place with international die maker M/s. Ogihara Thailand Company (OTC) through a technical assistance agreement. This collaboration translates in technological advantage and competitive edge for the Company.
Business risk profile reflects continued sensitivity given the higher dependence of the Company’s business on automobile sales volume and notable dependence on imported raw material due to which the gross margins remain volatile. Profitability indicators weakened in FY24, however, registered notable recovery in 9MFY25 amid rebound in automobile sales and decrease in raw material prices. The Company’s revenue base does depict counterparty concentration, albeit the same is largely addressed by the presence of long-term binding contracts. Moreover, the Company made its first-ever export sales of Rs. 13m during 3QFY25 as part of its business diversification strategy.
ASC’s financial risk profile incorporates conservative capitalization indicators along with healthy liquidity and coverage profiles. The assigned rating remains dependent on maintaining business and financial risk profile in line with benchmark for the assigned rating.
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