Press Release
VIS Reaffirms Entity Ratings of Service Sales Corporation (Pvt.) Limited
Karachi, September 08, 2025: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Service Sales Corporation (Pvt.) Limited 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 remain ‘Stable’. Previous rating action was announced on May 20, 2024.
Service Sales Corporation (Private) Limited (SSCPL or Company), incorporated in 1965, is a private limited company engaged in the retail and wholesale of footwear and related accessories. The Company’s head office is located in Lahore. SSCPL’s operations span retail, wholesale, and e-commerce, with infrastructure across multiple locations. The retail division operates under the brand name Ndure, supported by a growing e-commerce platform. The Company operates over 330 outlets across Pakistan; all retail outlets are company-operated. The wholesale segment includes the Calza and Liza brands, distributed through a network of more than 800 independent retailers nationwide, supported by eight Wholesale Business Centers and dedicated digital channels.
The assigned ratings reflect a medium to high business risk profile, stemming from the cyclical and competitive nature of the footwear industry. Demand is closely linked to consumer preferences and disposable income, making it vulnerable to economic fluctuations. Pricing and volume pressures persist and are compounded by low regulatory and technological barriers to entry, which increase competition; however, these risks are mitigated by the Company’s expansion into major commercial areas and its shift toward locally sourced finished goods.
Ratings also factor in the Company’s financial risk profile. Despite a marginal decline in net sales, gross and operating margins improved in FY24, supported by revised pricing strategies and a shift toward locally procured finished goods manufactured in wholly owned subsidiaries. In 9MFY25, operating profit saw a slight decline due to higher operating expenses. SSCPL remains focused on expanding its footprint in high margin retail outlets, enhancing e-commerce penetration, and diversifying its customer base. The capital structure remains moderately leveraged, with gearing at manageable levels. Liquidity is adequate, with the debt service coverage ratio maintained above the minimum threshold. Ratings remain sensitive to the Company’s ability to sustain profitability, maintain momentum in retail sales, preserve liquidity, and manage leverage within acceptable limits.
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