Press Release
VIS Reaffirms Entity Ratings of Tech Sirat (Private) Limited
Karachi, June 30, 2026: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Tech Sirat (Private) Limited at ‘BBB+/A2’ (Triple B Plus /Single 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' indicates good likelihood of timely repayment of short-term obligations with sound short-term liquidity factors. Outlook on the assigned rating remains ‘Stable’. Previous rating action was announced on June 20, 2025.
Tech Sirat (Private) Limited (‘TSPL’ or ‘the Company’) was incorporated in 2014 under the Companies Ordinance, 1984 (now the Companies Act, 2017). The Company is primarily engaged in the purchase and distribution of smartphones and laptops. TSPL is a wholly owned subsidiary of Muller and Phipps Pakistan (Private) Limited.
The assigned rating reflects Tech Sirat (Private) Limited (‘TSPL’ or ‘the Company’)’s established position as one of the largest authorized distributors of Xiaomi's and Lenovo laptops in Pakistan. The Company's long-standing relationship with the principal, nationwide distribution network and association with the parent company i.e. Muller & Phipps Pakistan (Pvt.) Limited support its business and credit profile. While the operating environment remains competitive and margin sensitive, demand for smartphones is expected to remain broadly stable, supported by continued digital adoption.
The rating is underpinned by TSPL's adequate liquidity profile, manageable debt servicing capacity and continued access to committed short-term bank facilities to support working capital requirements. Although profitability moderated during CY25 amid lower distribution margins and a lengthening of the working capital cycle, coverage indicators remained commensurate with the assigned rating, supported by lower finance costs.
The rating also incorporates the Company's increasing reliance on short-term borrowings to finance working capital requirements, driven in part by higher advances and a gradual shift towards credit sales. While the current leverage and liquidity profile remains acceptable for the assigned rating, the increasingly competitive nature of the mobile phone distribution sector, continued pressure on margins, additional leveraging or sustained pressure on operating cash flows, resulting in weaker coverage metrics, will remain key rating sensitivities going forward.
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://vis.com.pk/docs/VISRatingScales.pdf