Press Release

VIS Upgrades Entity Ratings of Fast Cables Limited

Karachi, November 21, 2024: VIS Credit Rating Company Limited (‘VIS’) has upgraded the entity ratings of Fast Cables Limited (‘FCL’ or ‘the Company’) at ‘A/A2’ (Single A/A Two) from 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' suggests good likelihood of timely repayment of short-term obligations with sound liquidity factors. Outlook on the assigned ratings remains ‘Stable’. Previous ratings action was announced on December 4, 2023.

Fast Cables Limited (FCL), a public limited company incorporated in Pakistan in 2008, is engaged in the manufacturing and sale of electric wires, cables, conductors, and LED lighting products. The Company's head office and two manufacturing facilities are located in Lahore, with branch offices nationwide. The Company recently converted to public listed company through listing on Pakistan Stock Exchange on June 10, 2024.

Assigned ratings highlight the moderate risk profile of the wires and cables industry, influenced by economic cyclicality, construction activity, and the presence of an informal sector. While demand has remained subdued due to reduced construction activity and constrained public development spending, it is anticipated to recover. This recovery is expected to be driven by a rebound in construction projects following a decline in interest rates, increased adoption of solar energy solutions, and transmission network upgrades linked to the privatization of Distribution Companies (DISCOs).

Ratings incorporate the notable improvements in Company’s corporate and financial profile. The Company successfully listed on the Pakistan Stock Exchange (PSX) in FY24, raising PKR 3.1 billion, which strengthened its financial position. Over the past four years, FCL has demonstrated strong financial performance with a compound annual growth rate (CAGR) of 42% in sales together with consistent increase in margins. FCL’s robust presence in the institutional sales segment, provides stability during periods of subdued construction activity. This is supported by demand from transmission network upgrades, a segment characterized by its non-cyclical nature. Additionally, the launch of a new LED lighting segment has diversified its product portfolio, creating new growth opportunities. The Company is in the process of undertaking an expansion project to enhance operational efficiency. Going forward, maintenance of margins along with liquidity and capitalization profile will remain important for ratings.

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

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