Taj Gasoline’s Volume Surge Secures ‘A/A-2’ Rating Upgrade
Taj Gasoline is pleased to announce that The VIS Credit Rating Company Limited (VIS) has upgraded the entity ratings of the company from ‘A-/A-2’ to ‘A/A-2’. This significant upgrade reflects Taj Gasoline’s strong volume growth relative to the industry and highlights its robust operational and financial performance.
The upgraded ratings are further bolstered by Taj Gasoline’s adequate liquidity profile and sound cash flow coverage. The company’s favorable capitalization profile, supported by equity injection, has allowed for low gearing, reinforcing its financial stability.
Taj Gasoline is strategically enhancing its operations, with plans to increase its number of sites to 75, primarily in Sindh, while also targeting new regions in Punjab. The company is expanding its storage capacities in Khyber Pakhtunkhwa (KPK) and Sindh, with these expansions expected to significantly elevate total storage capacity by FY25.
Despite the industry-wide decline in volumes due to a slowdown in economic activity, high interest rates, elevated prices of Motor Spirit (MS) and High-Speed Diesel (HSD), decreased power generation using Furnace Oil, and increased smuggling, Taj Gasoline has successfully grown its volumes. This growth is attributed to the company’s strategic network expansion, which has also led to an increase in its market share.
The VIS ratings also take into account the high to medium business risk profile of the Oil Marketing Company (OMC) segment, which is characterized by high cyclicality, strong regulatory oversight, and low pricing power.
Taj Gasoline is committed to continuing its trajectory of growth and excellence, reinforcing its position as a leading player in the industry. The company remains focused on enhancing its operational capabilities and delivering value to its stakeholders.
About Taj Gasoline (Private) Limited
Taj Gasoline (Private) Limited is a leading oil marketing company in Pakistan, dedicated to providing high-quality petroleum products and services. With a growing network of retail outlets and a strong focus on customer satisfaction, Taj Gasoline is poised for continued success and expansion in the years to come.
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