Press Release

VIS Reaffirms Entity Ratings of Fast Cables Limited

Karachi, December 4, 2023: VIS Credit Rating Company Limited (VIS) reaffirms entity ratings of Fast Cables Limited ('FCL' or 'the Company') at 'A-/A-2' (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 'A-2' indicates good certainty of timely payment. Liquidity factors and company fundamentals are sound. Access to capital markets is good and risk factors are minimal. Outlook on the assigned ratings remains Stable. Previous Rating action was announced on November 16, 2022.

Fast Cables Limited, a public limited company incorporated in 2008, specializes in manufacturing and selling electric wires, cables, and conductors. With its registered office in Lahore, FCL operates two manufacturing units in the city and maintains branch offices across major cities of Pakistan. The Company is considered one of the three major players in the electric and cable goods industry.

Assigned ratings incorporate the industry’s medium business risk profile. The industry's oligopolistic nature, with major firms collectively holding 60% of the market share, mitigates some cyclicality and competitive intensity. However, vulnerabilities arise from global market fluctuations in imported raw materials, such as copper. Nonetheless, despite challenges faced by the cable and electrical goods industry in FY23, including economic uncertainties, inflation, and high-interest rates, FCL financial performance remained stable.

Ratings also consider FCL's top line and margin growth, supported by sales to government institutions. The Company's initiatives, including entering export markets and launching 'Fast Lights,' contributed to growth in topline in FY23. Improvements in gross profit margin and net margin increase provide support to ratings. Ratings also account for the improvement in the capitalization profile. However, it was noted that while the gearing ratio saw significant recovery, leverage remained constrained by a notable payable buildup. Similarly, while liquidity profile remained stable, the buildup in payables posed a concern for FCL's liquidity profile.

FCL’s ability to ease its payable buildup while maintaining its gearing and coverage benchmarks and improving its liquidity and leverage ratios will be key ratings consideration going forward.

For further information on this ratings announcement, please contact Saeb Muhammad Jafri at 021-35311861-64 (Ext. 202) and/or the undersigned at 021-35311861-64 (Ext. 201) or email at

Javed Callea

Applicable Rating Criteria: Corporates (May 2023):
VIS Issue/Issuer Rating Scale

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .