Press Release
VIS Reaffirms Entity Ratings of Tech Sirat (Private) Limited
Karachi, June 20, 2025: VIS Credit Rating Company Limited (VIS) has reaffirmed the entity ratings of Tech Sirat (Pvt.) Limited (‘TSPL’ or ‘the Company’) at ‘BBB+/A2’ (Triple B Plus/A Two). 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. 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 February 22, 2024.
TSPL is operating as a distributor of Xiaomi, Motorola smartphones and Lenovo laptops in Pakistan. The Company’s head office is located in Karachi. Assigned ratings take into account sponsor profile of Muller & Phipps Pakistan (Private) Limited (‘M&P’), the largest distribution and logistics company in the country.
Ratings also incorporate low business risk of the Company, wherein the demand continued to grow, leading to notable revenue growth in CY24. However, net profitability was under pressure mainly due to higher financial cost. Sponsor support is evident in the form of a short-term loan, which the Company fully repaid by end-CY24, consequently leading to decline in debt leverage.
Demand of smartphones and laptops is projected to remain stable in CY25. Therefore, maintaining positive momentum in topline, improving profit margins while keeping a low leveraged profile, and strengthening debt servicing ratios, will be important, from the ratings context.
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