Netracon Technologies (Private) Limited (“NTPL” or “the Company”) is a private limited company incorporated on November 27, 2014, under the Companies Act, 2017. The Company is classified as a Large Scale Company (LSC) and operates in both the international and domestic power and telecom sectors.

NTPL commenced operations in 1997 in Malaysia as a sole proprietorship engaged in transmission line and civil works construction. Over time, it expanded into Pakistan and other international markets, leveraging its technical expertise and project management capabilities. In 2023, the business was converted into a private limited company and registered in Pakistan. The Company has since evolved into a provider of turnkey solutions in the power and telecom sectors, with experience in executing projects in complex and challenging environments. NTPL’s core expertise spans the full project lifecycle, including design and engineering, procurement, civil works, erection, installation, testing, and commissioning. Its operations primarily cover transmission lines, substations, and telecom infrastructure, supported by in-house technical capabilities and an experienced engineering workforce.

NTPL is principally engaged in engineering, procurement, and construction (EPC) projects, specializing in the construction and upgradation of transmission lines, substations, and telecom sites. The Company offers end-to-end turnkey solutions, leveraging strong in-house expertise and extensive industry experience to deliver large-scale projects across diverse terrains, complex site conditions, and varying voltage levels.

The Company provides comprehensive services across the full project lifecycle, including:

• Design & Engineering: Planning and designing transmission lines, substations, and telecom infrastructure
• Civil Works & Construction: Foundations, tower erection, substations, and overall site development
• Procurement & Installation: Equipment, transformers, switchyards, and specialized systems
• Testing & Commissioning: Ensuring operational efficiency, safety, and compliance with technical standards

Netracon’s ownership structure is entirely concentrated within the Sherazi family, reflecting a closely held, family-owned enterprise. Mr. Syed Asghar Ali Sherazi holds 20% of the Company’s shareholding and serves as the Chief Executive Officer (CEO). Ms. Shahida Sherazi, who holds 20%, is his wife and serves as a director. The remaining 60% shareholding is equally distributed among their four children: Mr. Syed Yasir Ali Sherazi (15%), Mr. Syed Nasir Ali Sherazi (15%), Ms. Syeda Aleena Sherazi (15%) and Ms. Shahbano Sherazi (15%), all serve on the Board as Directors.

The sponsor family has maintained a long-standing association with the Company, originating from its operations under a partnership structure. Following its conversion into a private limited entity in 2023, the shareholding structure has remained entirely family-controlled, reflecting continuity and stability in ownership. Mr. Syed Asghar Ali Sherazi continues to play a central leadership role and remains actively involved in overseeing operations and strategic direction, including close supervision of execution at the last-mile level.

The sponsors of Netracon Technologies (Pvt.) Ltd. possess strong business acumen, backed by over 20 years of experience in both domestic and international power and telecom markets. They have developed a deep understanding of EPC project execution, including the construction and upgradation of transmission lines, grid stations, and telecom infrastructure across varying voltage levels and complex site conditions. Under their leadership, the Company has successfully executed large-scale and technically demanding projects, including a 500 kV grid station in Faisalabad, and has completed over 150 projects locally and globally, with an operational footprint in Saudi Arabia, Ethiopia, Cameroon, Ghana, Afghanistan, Kyrgyzstan, Tajikistan, Malaysia, and the Philippines. Their ability to manage cross-border operations, adapt to diverse regulatory environments, and deliver projects efficiently underscores their strong commercial judgment, technical expertise, and strategic foresight.

The sponsors demonstrate adequate financial strength and a clear commitment to supporting the Company’s operations and growth. An associated partnership entity (AOP), operating under the name Netracon Technologies and comprising the same family partners with identical ownership proportions, has a capital base of approximately PKR 2bln. This reflects the sponsors’ adequate financial standing and capacity to mobilize resources when required. Further evidencing their support, the AOP has extended an interest-free loan of PKR 1bln to the Company, payable on demand. This financial backing underscores the sponsors’ willingness to inject liquidity, strengthen the Company’s financial profile, and support working capital and project execution requirements.

The Board of Directors of the Company reflects a closely held, family-owned governance framework, comprising six members from the sponsoring Sherazi family. Three directors serve as executive members actively involved in the management of the Company, while the remaining three are non-executive directors. This structure ensures centralized decision-making and strong alignment between ownership and management, consistent with the family-owned nature of the business.

The executive directors include Mr. Syed Asghar Ali Sherazi, the Chief Executive Officer with over 22 years of experience; Mr. Syed Yasir Ali Sherazi, Finance Director with 22 years of experience; and Mr. Syed Nasir Ali Sherazi, Business Development Director with 22 years of experience. All three have been associated with the Company since its incorporation. The non-executive directors—Ms. Shahida Sherazi, Ms. Syeda Aleena Sherazi, and Ms. Shahbano Sherazi—serve as member directors, providing strategic oversight without involvement in operational matters. This composition reflects both continuity in leadership and the integration of the second generation into the family business.

The Board benefits from strong family representation and continuity in leadership, providing clear strategic direction and alignment with the Company’s long-term objectives. The Board has three committees—Audit, Human Resources (HR), and Risk—which address matters of significance. While these committees oversee key areas, their meetings and deliberations are not formalized through structured processes, and decision-making primarily takes place through full Board discussions and executive management oversight.

The Company’s financial statements for FY25 have been audited by Youaf Saeed & Company, Chartered Accountants, who provided an unqualified opinion, indicating that the financial statements present a true and fair view of the Company’s financial position. The audit engagement received a satisfactory QCR rating, although the firm is not listed on Panel ‘A’ of approved auditors. For the associated partnership entity (AOP) Netracon Technologies, Safdar Saad & Company serves as the auditor and also expressed an unqualified opinion on the FY24 financial statements. Overall, financial transparency for both the Company and the AOP is considered adequate, with disclosures meeting the necessary regulatory and reporting requirements.

The organization chart of NTPL represents a hierarchical structure with clear reporting lines and functional responsibilities across domestic and international operations. At the top is the Managing Director, who oversees the Board of Directors and the Company Secretary, serving as the central point of strategic and operational guidance. Key regional leadership includes Netracon KSA, managed by Syed Nasir Ali Sherazi, and Netracon UAE, managed jointly by Syed Nasir Ali Sherazi and Syed Yasir Ali Sherazi, reflecting the Company’s international footprint. Under the Board and Managing Director, the organizational structure is divided into functional and project-based divisions. The CFO oversees finance, including the Deputy Accounts Manager, Accounts Officer, and site accountants. Human Resources and Procurement are led by the HR Manager/Procurement Head, supported by storeyard staff across multiple domestic and international sites. Project execution is managed through GM Projects (T/L) and GM Projects (G/S), covering transmission lines and grid station projects, with dedicated construction managers, project engineers, and site supervisors. The Design and Engineering function is headed by the GM Design, supported by civil and electrical engineers, PLS CAD/Digital Contouring, and surveying teams. Compliance and legal matters are handled by the Contracts/Compliance team and legal counsel, while HSE/QA and internal audit functions report to ensure operational integrity and adherence to standards. Supporting roles such as planning, document control, and site coordination ensure smooth execution across multiple domestic and international locations, including Faisalabad, Chitral, Shikarpur, Karkatak, Breshnakot (Kabul), Dashte-Toup (Afghanistan), and Chukaitan, demonstrating a geographically distributed and functionally specialized organization.

The Company’s management is led by Syed Asghar Ali Sherazi, Chief Executive Officer, who brings nearly five decades of professional experience, including over two decades with the Company. He is supported by Directors Syed Nasir Ali Sherazi and Syed Yasir Ali Sherazi, both of whom have long-standing experience within the organization. Governance and operational oversight are strengthened by Moazzam Munir (Company Secretary) and Abdul Razaq (Head of HR and Procurement), each with extensive industry exposure and significant tenure with the Company. Technical leadership is anchored by Muhammad Rafique (GM Design) and Masud Khan (Project Manager / Technical Head), who bring substantial experience in design and project execution. The broader engineering and project teams, along with finance and IT functions led by Mohsin Ali (CFO) and Muhammad Faisal Fiaz (IT Manager), provide additional operational and technical support. Overall, the management team reflects a combination of deep industry expertise and long-standing association with the Company, supporting continuity in strategy and execution.

The Company does not have established formal management committees. Instead, senior management convenes as needed, with meetings occurring regularly.

The Company has implemented a Management Information System (MIS) to support its operational and strategic decision-making. The system, named CNS, was developed and implemented by CNS (Pvt.) Ltd. in February 2022 and has been regularly maintained under an active update agreement. The MIS is designed to capture, process, and report key operational, financial, and project-related data, enabling timely and accurate management oversight. The system was last updated in June 2025, reflecting the Company’s commitment to keeping its information infrastructure current and reliable. Overall, the MIS provides senior management with comprehensive, real-time insights, facilitating effective monitoring, planning, and performance evaluation across all business functions.

Netracon maintains an adequate control environment commensurate with the scale of its operations. The Company has an in-house Internal Audit Department comprising two personnel, which reports directly to the CEO, ensuring reasonable independence and effective oversight. The Internal Audit function submits quarterly reports highlighting control observations and compliance matters. Management reviews these reports in meetings and ensures timely implementation of corrective actions.

Pakistan’s power sector continues to face structural transmission constraints, limiting efficient evacuation of generated electricity from generation hubs to load centers. While generation capacity has improved over the years, the transmission and grid infrastructure has not expanded at the same pace, creating system bottlenecks and curtailment risks. To address these gaps, the Government of Pakistan is actively engaging multilateral lenders such as the International Bank for Reconstruction and Development (IBRD), Asian Development Bank (ADB), and Islamic Development Bank (IsDB). These institutions are providing concessional financing for expansion and upgradation of transmission lines and substations, supporting sustained activity in the EPC segment. Going forward, integration of renewable energy projects, expansion of the national grid, and cross-border energy initiatives are expected to maintain demand for high-voltage transmission lines and specialized conductors over the medium to long term. However, the industry remains exposed to execution risks, circular debt pressures, foreign exchange volatility (given reliance on imported materials), and dependence on public-sector development spending. The competitive landscape is largely tender-driven and margin-sensitive.

NTPL operates in the EPC segment of conductors, transmission lines, substations, and telecom towers. The Company competes with other established EPC contractors for projects that are approved or funded by multilateral financial institutions. Key competitors include Descon Engineering Limited, Siemens Pakistan, National Engineering Services Pakistan (NESPAK), and international firms like Kalpataru Projects International Limited. In the telecom tower segment, companies such as China Electric Power Equipment and Technology Co Ltd (CET) and various local EPC contractors are also active. NTPL’s positioning is supported by ongoing infrastructure gaps and projects financed through multilateral institutions, providing a steady pipeline of opportunities. Its competitive strength depends on technical expertise, execution track record, financial capacity, and pricing competitiveness in a tender-driven market.

Netracon Technologies (Pvt.) Limited’s revenues are primarily derived from EPC contracts, including transmission line construction, substation projects, and telecom site development. The Company’s revenue profile reflects the inherently project-based nature of its operations.The revenues during the  FY23  and FY24 remained largely stable in FY23 (PKR 8,173 mln) and FY24 (PKR 8,118 mln), followed by a decline to PKR 5,581 mln in FY25, representing a contraction of approximately 30%. This decline is primarily attributable to certain adjustments in the current period related to material costs, rather than a fundamental slowdown in operational activity. While revenues are generally influenced by the timing of project execution, award cycles, and public sector development spending, the Company maintains a healthy project pipeline and order book. The projects in hand and projected inflows over the next three years are expected to provide a steady revenue stream, with management targeting a topline in the range of PKR 6–8 bln, supporting revenue stability going forward.

Profitability remains closely linked to the project lifecycle, with gross margins generally ranging between 10% and 15% over the duration of a project. However, year-on-year variations are observed, primarily reflecting the stage of execution of ongoing contracts. As revenue and costs are recognized on a percentage-of-completion basis, different phases of a project—such as initial mobilization, peak execution, and completion—result in varying margin profiles over a typical 2–3 year cycle. Accordingly, the higher gross margin reported in FY25 reflects the progression of certain projects into more profitable stages and completion phases, rather than a structural shift in margin levels. Net profit margins have followed a similar trend, influenced by project phasing as well as finance costs and non-operating income. Overall, profitability remains supported by the Company’s diversified project portfolio and its ability to manage costs effectively across different stages of execution.

NTPL’s sustainability is supported by its established presence in the engineering, procurement, and construction (EPC) segment, including transmission lines, substations, and telecom towers. The Company’s ability to secure repeat contracts from both government and private sector clients provides revenue visibility and operational continuity. However, sustainability remains exposed to sector-specific factors, including the cyclical nature of infrastructure projects, commodity price volatility, and timely project execution. Strategic initiatives, such as diversifying the client base and enhancing technical capabilities, will be critical to maintaining long-term competitiveness in a capital-intensive and highly competitive EPC environment.

In EPC contracting, working capital is typically driven by customer advances, project execution, and milestone-based billing under percentage-of-completion accounting. As projects progress, advances are deployed for execution, costs are incurred, and receivables build up until certification and billing, making working capital inherently cyclical in nature. NTPL operates within this framework, where working capital requirements are primarily managed through customer advances and internally generated cash flows rather than reliance on external funding lines. In FY25, net working capital days stood at 46 days, reflecting ongoing project execution with higher receivables and supplier advances during mid-cycle stages. The Company does not depend materially on drawn funding lines; however, to support operational requirements, it maintains unfunded banking facilities for guarantees. These facilities are backed by a strong cash balance of PKR 4,419 mln, along with related-party funding of PKR 2,035 mln. This provides additional financial flexibility and ensures smooth project delivery without liquidity constraints.

Coverage indicators remain very strong, supported by healthy operating cash flows and minimal finance costs (PKR 13 mln in FY25). EBITDA coverage remains exceptionally high, reflecting the Company’s low leverage profile. FCFO stood at PKR 649 mln in FY25, comfortably covering finance costs and indicating strong internal cash generation capacity and limited financial risk.

The Company’s capitalization reflects a conservative and low-leverage approach to funding its project-linked operations. As of FY25, borrowings stood at only PKR 16mln (primarily minor long-term lease facilities and current maturities), down sharply from PKR 1,481mln in FY22 following scheduled repayments. The leverage ratio improved dramatically from 80.6% in FY22 to 0.0% in FY23 and remained negligible at 0.7% in FY25. Other liabilities largely comprise an interest-free loan from the associated AOP (Netracon Technologies partnership) of approximately PKR 2bln, providing flexible sponsor support without elevating leverage. The capital structure remains strong and well-aligned with the long-term, project-based nature of the Company’s assets, while future movements in leverage will remain dependent on the pace of new project wins .