Press Release

VIS Maintains Entity Ratings of Lucky Core Industries Limited

Karachi, March 05, 2025: VIS Credit Rating Company Limited (‘VIS’) maintains the entity ratings of Lucky Core Industries Limited (“LCI” or “the Company”) at AA/A1+ (Double A/ A One Plus). Medium to long term rating of “AA” indicates high credit quality; Protection factors are strong. Risk is modest but may vary slightly from time to time because of economic conditions. Short-term rating of “A1+” suggests, strongest likelihood of timely repayment of short-term obligations with outstanding liquidity factors. Outlook on the assigned ratings has been changed to ‘Positive’ from ‘Stable’. Previous ratings action was announced on February 28, 2024.

LCI, a diversified conglomerate listed on the Pakistan Stock Exchange, operates across multiple sectors, offering products such as soda ash, polyester staple fiber (PSF), chemicals, pharmaceuticals, animal health products, and agricultural inputs. In September 2024, the Company acquired a manufacturing facility, selected pharmaceutical products, brands and associated trademarks from Pfizer Pakistan Limited and other relevant Pfizer group entities. LCI is a part of the Yunus Brothers Group (YBG). YBG's diversified portfolio spans across cement, automobiles, textiles, power, chemicals, healthcare, and other sectors.

Assigned ratings consider the diversified and low business risk profile of the Company, supported by its leadership position in the soda ash business and significant market share in polyester segment. The Company's exposure to medium and low risk sectors, such as agri-sciences, chemicals and pharmaceutical segments, further diversifies its operations. Ratings also factor in the significant market presence of its sponsors, Yunus Brothers Group (YBG), with a strong financial profile and presence across multiple industries.

Assigned ratings consider the Company’s financial risk profile, including sustained growth in revenues supported by growth across all businesses. Profitability increase has been maintained through operational efficiencies and multiple growth initiatives despite challenging economic conditions. The Company maintains a conservative capitalization structure, supported by internal cash generation and a low gearing ratio. Liquidity is underpinned by significant cash reserves and short-term investments. Coverage ratios remain healthy on account of strong internal cash flows and a prudent approach to debt utilization.

Going forward, ratings will remain sensitive to the Company’s ability to sustain profitability across its diversified business segments and maintain its conservative capitalization and liquidity profiles.

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

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information.VIS , the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report.VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright 2025 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .