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The
However, slow local demand and expanded capacity resulted in depressed cement prices (especially in north region). Export is another avenue. Industry wide exports (sizeable increase in
The likelihood of impact is considered high where quantum is directly correlated with tenure of lock down. Curtailed key policy rate will provide much needed breathing space to the sector. The company's efforts of incentivizing dealers in order to enter new markets and developments in achieving cost efficiencies are a positive. The strengthening of business profile by achieving previous higher utilization levels, healthier margins is essential. The Company's financial profile is moderately leveraged whilst significant dip in profitability and increase in finance cost has led to decline in coverage. Going forward, improvement in profitability for timely repayment of debt remains vital.
The rating are dependent on upholding company's market position along with sustenance of business volumes and margins. Company's long term debt repayment is important to improve financial risk matrix. The company's strong business performance in current stretched economic scenario - challenges on demand front - remains vital for ratings.
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