Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its ratings for Guard Agricultural Research and Services (Pvt.) Limited, citing the company’s reinforced business position in the agriculture and food sector and consistent financial performance. The long-term and short-term ratings remain at ‘A-‘ and ‘A2’, respectively, with a stable outlook.
According to The Pakistan Credit Rating Agency Limited, Guard Agricultural Research and Services has solidified its market presence through the strategic marketing of its packaged basmati rice, expanding its footprint to 45 countries across various continents. The family-owned Guard Group boasts a robust history in multiple sectors, enhancing the firm’s creditworthiness. The company’s governance is supported by a board primarily composed of family members, with strategic guidance from sub-committees and a seasoned management team, adept at navigating the challenges of the rice industry.
The recent fiscal year saw Pakistani rice exporters reach a record $3.93 billion in foreign exchange, facilitated by an unexpected market opportunity created by India’s temporary rice export ban. This scenario allowed Pakistan, and particularly Guard Agricultural Research and Services, to boost its exports significantly, achieving a remarkable 23% growth in sales to PKR 10 billion. The company’s operational efficiency is reflected in improved gross margins of approximately 14.7% and stable net profit margins of 4%.
Financial stability is further underscored by the company’s sound capital structure, reduced leverage, and prudent financial management. PACRA highlights the importance of maintaining strong brand reputation and customer satisfaction, which are crucial for ongoing business expansion and the sustainability of positive financial outcomes.
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