Press Release

VIS Maintains Entity Ratings of Naveena Industries Limited (NIL)

Karachi, November 20, 2020: VIS Credit Rating Company Limited (VIS) has maintained the entity ratings of Naveena Industries Limited at ‘BBB+/A-2’ (Triple B Plus/A-Two). Outlook on the ratings has been revised from ‘Rating Watch-Negative’ to ‘Stable’. Long Term Rating of BBB+ reflects adequate credit quality; protection factors are reasonable and sufficient. Risk factors are considered variable if changes occur 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. Risk factors are small. The previous rating action was announced on April 24, 2020.

The principal business of Naveena Industries Limited (NIL) includes manufacturing and export of grey cloth. Production facilities of the company are located in Karachi and Rahim Yar Khan. Exports constitute around four fifth of the total sales of the company.

The revision in rating outlook reflects maintenance of the financial risk profile in line with the parameters for the assigned ratings. Given the onset of COVID-19 in the review period, net sales of the company have registered marginal growth in FY20 and Q1’FY21 in comparison to the corresponding periods in the preceding years. Gross margins were reported slightly lower vis-à-vis FY19 on account of increase in overheads and raw materials costs. Leverage indicators have depicted improvement on a timeline basis due to repayment of long term debt. Even though concerns of a 2nd wave of Covid-19 remain elevated, management expects the order book to remain strong in the ongoing year, thereby easing business risk concerns. The assigned ratings remain dependent on maintenance of profitability, liquidity & capitalization metrics in line with the threshold. Given the worldwide continuation of COVID-19 and the company’s dependence on exports, VIS will continue to track financial indicators of the company.

For further information on this rating announcement, please contact Mr. Narendar Shankar Lal (Ext: 203) or the undersigned (Ext: 306) at (021) 35311861-66 or email at

Faryal Ahmad Faheem
Deputy CEO

Applicable Rating Criteria: Corporates (April 2019)

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 2020 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .

VIS Credit Rating Company Limited