Maaksons Engineering Corporation Limited (“Maaksons” or “the Company”), previously known as M. A. Aleem Khan & Sons (Pvt) Limited, was incorporated as a Private Limited Company in 1984 under the repealed Companies Ordinance 1984 (now the Companies Act, 2017). The registered office of the Company is in Garden Town, Lahore.

The Company was established in 1951 by Mr. M. A. Aleem Khan and was converted into a private limited company in 1984. Since 1951, Maaksons has been engaged in the construction business, delivering numerous Public Works Development Projects. Over the years, the Company has successfully completed various strategic water management and irrigation projects, and subsequently expanded into infrastructure, commercial, and institutional construction. It has consistently demonstrated the ability to undertake large, complex projects and deliver them on time, within budget, and to the highest quality standards—often achieving early completions—earning recognition and awards from various authorities.

MAAKSONS specializes in a diverse range of construction projects, including roads and highways, bridges and overhead bridge structures, underpasses, mixed-use high-rise buildings, residential and commercial buildings, canals, tunnels, water, irrigation, dams and flood systems, oil and gas pipelines, industrial and prefabricated buildings, and workshop mill query system. The Company holds a “no limit” C-A license from the Pakistan Engineering Council, which allows it to undertake projects of any scale. Some of its notable achievements include the construction of the Community Center, Penta Square Appartments and Prism-9 at DHA Lahore, recently started Lake City Medows project, NSIT - CBD project,  the Signal Free Corridor on Islamabad Highway and in DHA Lahore, the Metro Bus Corridor in Lahore, the Underpass at Bedian Road, Lahore, Widening & Improvement of Main Sheikhupura Road and Sharaqpur Road, Constr. & Rehabilitation of Islamabad Expressway from Faizabad Interchange to Koral Chowk, the 29-Storey Telecom Tower in Islamabad, Construction of 165 Bedded Integrated Medical Care Hospital, DHA, Construction of 12 Storey Park & Ride Parking Plaza, Liberty Market, Lahore, Design & Built Access Command, Control Center and Infrastructure Development for Diplomatic Enclave, Islamabad, Thermal the 3x210 MW Power Station in Muzaffargarh, and the Chashma Canal, among others. After exploring real estate development, the Company has refocused on its forte: infrastructure-based construction projects.

Maaksons is entirely a family-owned business where the third generation has also joined in recent years. Mr. M. Aleem Khan was the founder of the Company, and after his demise, his eldest son, Mr. Waseem, has emerged as the man at the last mile. The shareholding structure is divided among Mr. M. Aleem Khan's sons, their wives, and his grandsons. Specifically, 5% of Mr. M. Aleem Khan's shares were equally distributed among his sons, increasing their individual stakes to 17.5% each. The wives of the sons each hold 2.5%, while the four grandsons have 15% ownership each. The Company’s hierarchy maintains clear lines of authority, with Mr. Aleem Khan’s sons and grandsons overseeing their respective areas of responsibility.

Ownership has remained with the sponsoring family since the Company’s inception, and no changes are anticipated in the near future. Although there is no formal succession plan in place, a verbal understanding and the clear division of responsibilities among family members contribute to stability in the ownership structure. Currently, Mr. Wasim, the CEO, oversees all matters with support from Mr. Ahsan in the next tier.

The sponsoring family has been in the construction industry for many decades. The sponsors possess a comprehensive understanding of the business, as they are actively involved in the day-to-day operations.

MAAKSONS has a sound financial profile, supported by several subsidiaries, including MAAKCRETE, MAAK Asphalt, and MAAK Gas, which primarily serve the parent organization. Additionally, the sponsors, both independently and through the Company, own numerous properties across different locations in the country, providing further strength and stability to the financial profile.

The overall control of the Company rests with a six-member board, which includes two senior directors: Mr. Waseem Khan and Mr. Nadeem Khan, both sons of the late Mr. M. Aleem Khan. The four grandsons of Mr. Aleem Khan serve as executive directors.

Mr. Waseem Khan and Mr. Nadeem Khan have had a long-standing association with the Company. Their elder sons, Mr. Ahsan Aleem Khan and Mr. Zunair Aleem Khan, bring extensive experience in the construction industry, while the younger sons, Mr. Shazer Aleem Khan and Mr. Shahnawaz Aleem Khan, are relatively new to the field.

The Board members are actively involved in the planning and execution of the business projects and overseeing the operations on a regular basis. All six male family members hold executive roles within the Company. The board structure could benefit from the addition of independent members to enhance oversight and governance.

M/s. Kamran & Co. Chartered Accountants serve as the external auditors for the Company. They issued an unqualified audit opinion with an emphasis of matter paragraph on the financial statements for the year ended June 30, 2024.

The Company's operations are divided into two regions: Islamabad and Lahore, each operating independently. The head office is located in Lahore, while the regional office is in Islamabad. Business related to the Lahore region is managed by Mr. Waseem Khan and his two sons, while the Islamabad region is overseen by Mr. Nadeem Khan and his two sons. This structure clearly demarcates the responsibilities between the regions. Accounts for both regions are maintained separately and consolidated at the MAAKSONS level.

The board members are supported by an experienced team. Mr. Waseem Khan serves as the CEO of the Company. Descending tier, the team includes Mr. Aamir Chaudhry, General Manager of Construction; Mr. Anwar Cheema, Head of the QS (Quantity Surveying) Section; Mr. Saad Ahmed Farooqi, Regional Manager; Mr. Hamza Mehmood, Manager of Contracts & Operations; and Mr. Iqbal Gabol, Chief Financial Officer. All these department heads are supervised by Directors Mr. Ahsan Aleem Khan and Mr. Zunair Aleem Khan in their respective regions.

The management functions are clear and well-defined, ensuring the effective achievement of the Company's goals and objectives. The board members closely oversee the team to ensure successful execution. Additionally, the board plays an active role in preparing project bids, with detailed meetings held for this purpose. The management holds regular meetings to discuss Company affairs, though the documentation of these meetings is not formalized.

MAAKSONS currently uses the Axiom ERP System to generate daily reports and track project-specific progress. This web-based system is accessible to all staff working on the projects and provides reports on various aspects such as suppliers, procurement, inventory, and more.

MAAKSONS adheres to strict quality control standards, recognizing their importance in the construction industry. The Company maintains a comprehensive Management Information System (MIS) to enable the management to track activities across various project sites. While a system of internal control is in place, continuous review by an internal audit department would further improve the effectiveness of the management.

The Public Sector Development Program (PSDP) for the fiscal year 2024 (FY24) saw an increase of approximately 30.7% year-on-year (YoY), reaching PKR 950bln. Under the Current and Development Expenditure on the Revenue Account, a specific allocation has been made for Construction and Transport. The total amount for these sectors is PKR 40.5bln for Current Expenditure and PKR 39.1bln for Development Expenditure. In comparison to the previous fiscal year (SPLY), these figures have slightly changed, with allocations for Construction and Transport last year being PKR 30.2bln and PKR 55.2bln, respectively.

Additionally, MAAKSON benefits from its sponsors' ventures into related businesses within the construction and real estate development sectors. This diversification provides a strategic edge over its peers, as the Company can efficiently utilize in-house resources, optimize costs, and generate steady income streams. This integrated business model not only enhances MAAKSON’s operational efficiency but also contributes to sustained financial performance.

MAAKSON’s revenue slightly declined to PKR 4,505 million during 9MFY25, compared to PKR 5,783 million in the corresponding period last year (FY24: PKR 6,780 million). While the topline decreased slightly, net profit improved to PKR 843 million, compared to PKR 552 million in 9MFY24 and PKR 314 million in FY24. The improvement in profitability is attributable to the nature of projects undertaken by the Company, which generally offer higher margins.

As apprised by management, the Company has recently initiated infrastructure development works for the Nawaz Sharif IT City (CBD project), Enertech Building, and the Lake City Meadows Project—a joint venture between Maaksons Engineering Corporation Ltd. and Lake City, wherein both parties hold 50% stakes in State Life Society near DHA Phase 4. Additionally, a number of projects have been launched in Lahore and Islamabad, which are expected to support topline growth over the next couple of years. Most of the ongoing projects are approaching completion. However, limited progress in certain ventures—particularly construction contracts with DHA Lahore and other real estate development projects—amid weak economic viability may continue to expose the Company’s revenue stream to volatility going forward.

According to 9MFY25 figures, MAAKSON recorded a gross margin of 30.1%, a significant improvement from 10.9% in FY24 and 22.2% in 9MFY24. Net profit margins also strengthened to 18.7% in 9MFY25, compared to 4.7% in FY24 and 9.6% in 9MFY24. Despite prevailing inflationary pressures, these improved margins highlight the Company’s ability to bid strategically and cautiously. Management continues to remain selective in project acquisition, focusing on short-term ventures that ensure quicker cash conversion and stronger liquidity.

Management is optimistic about securing a significant share of projects funded under the Public Sector Development Program (PSDP) and the Infrastructure Development Authority of Punjab (IDAP), which could further strengthen the project pipeline. Furthermore, several large projects are currently in the pre-qualification phase, with management expressing confidence in securing these contracts. However, the successful awarding and timely execution of these projects will be crucial for sustaining revenue growth and protecting profit margins, ensuring long-term financial stability and operational success.

MAAKSON relies primarily on internal cash flows and advances received from the projects to meet its working capital requirements, and has also decent short-term borrowings (STB) limits that were utilized as required. The Company maintains sound exposure to funded credit lines, and due to the nature of its operations, it holds a significant exposure to non-funded lines such as performance guarantees, which are essential for securing projects. The Company has approximately PKR 3bln in unfunded lines, around 50% of which approx. 1.7bln were utilized by the 9MFY25. In terms of operational efficiency, MAAKSON has shown improvement, with net working capital days reduced from 32 days in FY23 to 7 days in FY24 and remaining almost stable at 11 days in 9MFY25, indicating better cash cycle management. As MAAKSON’s project pipeline expands, the exposure to these nonfunded lines is expected to increase, potentially impacting the Company’s financial flexibility. However, maintaining a balance between internal cash generation and strategic use of credit lines will be critical to sustaining growth and operational stability.

In 9MFY25, MAAKSON demonstrated a revival in financial performance with free cash flows (FCFO) reaching PKR 976mln and EBITDA recorded at PKR 1,314mln, both significantly higher than the PKR 35mln and PKR 558mln reported in FY24. This substantial increase reflects the Company’s enhanced operational efficiency and improved profitability. The interest coverage ratio also rose to 20.6x in March 2025 compared to 5.2% in June 2024, driven by higher core operating profits and a substantial reduction in finance costs relative to revenue. This indicates MAAKSON’s strengthened ability to meet interest obligations, showcasing improved financial stability and a lower risk profile.

MAAKSON’s equity base has shown steady growth, increasing from PKR 4.9bln in FY24 to PKR 5.7bln in 9MFY25. This upward trend in equity highlights the Company’s strengthened financial foundation and retained earnings. Total borrowings, including lease liabilities for vehicles, increased to 902mln in 9MFY25, which increased compared to PKR 596mln in FY24 and PKR 539mln in FY23. The debt-to-debt plus equity ratio increased to 13.5% in 9MFY25, up from 10% in FY24. The Company’s borrowings are primarily composed of short-term borrowings.