Press Release
VIS Reaffirms Entity Ratings of MicroTech Industries (Pvt) Limited
Karachi, August 21, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of MicroTech Industries (Pvt) Limited (‘MIL’ 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 payment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on July 12, 2024.
MIL was incorporated as a single member company on January 15, 2003, and transitioned into a private limited company in 2005. MIL is engaged in the design, development, and manufacturing of hi-tech energy meters and providing comprehensive solutions in related fields. The Company shares common directorship with Simla Tracon (Pvt.) Ltd. (STL) and Microtech Transformers (Pvt.) Ltd. (MTL), where Mr. Shayan Siddiqi, CEO of MIL, holds ownership stakes of 33% in STL and 51% in MTL.
The ratings incorporate medium business risk profile of MIL characterized by limited competition and moderate cyclicality. Demand for energy meters is primarily driven by DISCOs; therefore, Company’s revenue is highly dependent on winning competitive tenders, which inherently contributes to revenue volatility. The sector’s outlook indicates moderate growth, underpinned by the anticipated privatization of DISCOs, technological advancements and continued urban expansion.
The Company’s financial risk profile is marked by significant growth in topline in FY24 and positive net margin which has consequently enhanced equity base and capitalization profile following net losses till FY22. Short-term borrowings have decreased over the years alongside absence of long-term debt, has supported capital structure. Resultantly, coverage metrics stand at healthy levels with a sound Debt Service Coverage Ratio.
Looking ahead, MIL is expected to maintain a steady topline growth underpinned by a healthy order pipeline. Moreover, the management anticipates a significant hike in sales upon materialization of government’s plan to replace a major number of static meters with smart meters.
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