Matracon Pakistan Pvt. Ltd. (hereinafter referred to as ‘‘the Company’’ or ‘‘Matracon Pak’’) is a Private Limited Company (unquoted) incorporated in 2006.

The company was originally founded by Mr. Abdul Qadir, who brought with him years of entrepreneurial experience. He initially launched the business in 1995 as a sole proprietorship in Quetta. After closing down the early operations, he re-established the company in Islamabad under the brand 'Matracon Pakistan' to pursue a broader vision.

Matracon Pak has focused its core activities on the development of both commercial and residential projects across Pakistan. Their portfolio includes large-scale infrastructure works such as roads, bridges, pipelines, canal systems, airport facilities, and water supply schemes. They are also involved in the construction of office complexes, industrial units, and pre-fabricated buildings.

Matracon Pakistan Pvt. Ltd. is predominantly held by Mr. Mohammad Abdul Qadir, who owns 99.9% of the company. The remaining 0.1% shares are held by his father, Mr. Muhammad Ayub.

With Mr. Qadir holding majority ownership, Matracon maintains a stable leadership foundation. However, there is a recognized need for a formal succession plan to secure long-term continuity and preparedness for future transitions.

Matracon Pakistan is guided by a highly experienced and capable leadership team. Mr. Mohammad Abdul Qadir, with over 28 years in the construction industry, and his partner, with 57 years of field expertise across senior roles, bring strategic insight, operational strength, and deep industry knowledge. Their long-standing involvement of over 15 years in the company reflects strong leadership and a hands-on approach to driving sustainable growth.

The ownership of Matracon Pakistan (Pvt.) Limited rests with a financially strong and established business family. Matracon serves as the sponsors’ primary business undertaking within the construction sector, supported by a substantial asset base that includes a portfolio of landholdings, providing notable financial flexibility. The sponsors demonstrate a stable financial position, with sufficient resources and liquidity to support their broader business interests and obligations.

Matracon Pakistan’s board consists of two members: Mr. Mohammad Abdul Qadir and his father, Mr. Muhammad Ayub. While this structure supports focused leadership, there is a recognized need to diversify the board by including professionals from various backgrounds to enhance strategic direction and governance.

Mr. Mohammad Abdul Qadir, a founding member, brings over 28 years of hands-on experience in the construction industry. He, along with Mr. Muhammad Ayub, has been part of the board since the company’s incorporation, contributing to its continued growth and development.

The board meets quarterly, however, formal records of meetings (minutes) are not maintained, and dedicated board committees are not yet in place. As the company is closely held, board governance remains centralized and would benefit from improved structure and oversight mechanisms.

The company’s financial statements for the year ended June 30, 2024, were audited by Hassan Farooq & Company, who issued an unqualified (clean) opinion, indicating that the financials fairly represent the company’s position. The audit for the financial year ending June 30, 2025, is currently in progress.

Matracon Pakistan operates with six key functional areas: (i) Finance, (ii) Marketing, (iii) Administration & HR, (iv) IT, (v) Engineering, and (vi) Procurement. These functions report directly to the Managing Director (MD). Each division is supported by a dedicated team, including both technical staff and senior managers, who report to their respective General Managers (GMs).

The management team is led by Mr. Jehanzeb Saulat, who heads execution and oversees business operations related to local clients. Mr. Akhwanzada Shahid Ali serves as the Chief Financial Officer (CFO), responsible for strategy, administration, and finance, including credit management, bank liaison, and handling Letters of Credit (LCs).

Although Matracon has an efficient segmented organizational structure with the sponsors directly overseeing day-to-day operations, there is a recognized need for formal management committees. These committees would help monitor performance, ensure compliance with company policies, and drive operational efficiency.

Matracon utilizes Intuit QuickBooks Enterprise Solutions as its customized accounting software for managing bookkeeping and accounting tasks, ensuring accurate financial record-keeping and operational efficiency.

The company adheres to rigorous quality control standards, in line with industry requirements. Matracon is certified under ISO 9001:2005, ensuring consistent quality in all its projects and reinforcing its commitment to excellence in the construction industry.

In FY2024, Pakistan’s construction sector contributed approximately 2.5% to GDP and held an 11.8% share of the industrial segment, though it recorded a real growth decline of 0.96%, further contracting by 7.1% YoY in 2QFY2025, reflecting macroeconomic challenges such as high inflation, rising construction and energy costs, currency depreciation, and fiscal constraints. The PSDP for FY24 rose 30.7% YoY to PKR 950 billion, with specific allocations for Construction and Transport sectors at PKR 40.5 billion (Current) and PKR 39.1 billion (Development), compared to PKR 30.2 billion and PKR 55.2 billion, respectively, in the previous year. For FY2025-26, the federal PSDP was reduced by 28.5% to PKR 1 trillion, with over 95% earmarked for ongoing projects, limiting new development activity. Despite short-term pressures, long-term fundamentals remain supported by population growth, urbanization, strategic infrastructure investments under CPEC, and growing demand for hydel-based power projects funded by multilateral agencies. As economic conditions stabilize, the construction industry is expected to rebound at an average annual growth rate of 4.6% from 2026 to 2029, providing cautious optimism for sustained recovery.

Out of more than 10,000 firms registered with the Pakistan Engineering Council (PEC) as Constructors/Operators, only around 1%, approximately 100 companies, hold the prestigious CA category license, which carries no limit on project size. Matracon Pakistan Pvt. Ltd. is among this elite group, positioning itself to serve a niche segment within the construction industry, particularly in large-scale infrastructure and specialized projects.

During FY25, Matracon reported revenues of PKR 20,461 million, reflecting strong growth compared to PKR 14,415 million in FY24. This increase aligns with the broader industry trend as economic activity rebounded. The company’s consistent top-line performance over the past few years highlights its robust project pipeline and operational execution.

Despite rising input costs, including raw materials and energy, the company maintained a gross profit margin of 16.1% in FY25, an improvement over FY24's 11.5%. Net margin stood at 8.7%, with profit after tax reaching PKR 1,782 million, up from PKR 1,060 million in the previous year. Finance costs also rose modestly to PKR 70 million in FY25, compared to PKR 61 million in FY24, indicating higher working capital needs tied to larger project volumes. Overall, the company’s margins and bottom-line growth reflect strong cost management and project profitability.

Matracon’s management has demonstrated reliable budgeting and forecasting, reflecting a clear strategic direction. The long-term sustainability of the Company depends on successfully securing new contracts and ensuring timely funding for project execution. Its strong asset base, underpinned by property holdings at prime location in Islamabad, along with its track record and industry position, provides a solid foundation for continued growth.

Matracon Pakistan relies on a mix of internal cash generation and efficient working capital practices to support its inventory and receivables cycle. The company has shown a strong upward trend in operational cash flows, with EBITDA reaching PKR 4,094 million in FY25, significantly higher than PKR 1,869 million in FY24. Despite challenges in project cost structures in previous years, the company has now improved its net cash conversion cycle to 43 days in FY25, a positive shift from 55 days in FY24, reflecting better receivables and inventory management.

The company continues to rely on interest-bearing short-term bank guarantees for liquidity support when needed. However, its strong operational performance has allowed it to internally fund much of its activity. In FY25, Free Cash Flow from Operations (FCFO) increased to PKR 2,752 million, supported by rising profitability and margin improvement. While the current ratio slightly decreased to 2.3x in FY25 (from 2.8x in FY24), it still reflects adequate short-term liquidity and a healthy cash buffer to cover liabilities.

As of June 2025, Matracon remains fully equity-financed, with zero reliance on long-term debt. The company's debt-to-debt plus equity ratio stands at 0.0%, consistent with the prior year. This conservative capital structure offers financial stability and flexibility to pursue growth opportunities without the burden of debt servicing.