PACRA Upgrades Entity Ratings of Matracon Pakistan (Pvt.) Limited

Matracon Pakistan (Pvt.) Limited (“the Company” or “Matracon”) has been operating in Pakistan’s construction sector since 1995, undertaking infrastructure and building projects for both public and private sector clients. The Company’s portfolio includes a range of large-scale infrastructure undertakings such as roads, bridges, pipelines, and canal systems, water supply schemes, and other related civil construction projects, and it has executed assignments in collaboration with various local and international contractors. In recent years, Matracon has been awarded several multi-year projects that are currently under execution, supported by a pipeline of upcoming projects, providing visibility into its future operations and revenues. The Providence and thorough evaluation of Matracon’s audited financial statements for FY25 provided a validation of the Company’s operational effectiveness and financial position. The observed consistency in project execution and sustainable revenue generation served as the basis for PACRA’s decision to upgrade the Company’s rating to BBB+. For FY25, the Company reported audited revenue of PKR 24.83 billion (FY24: 14.41 billion), higher than the previously reported management figure, primarily due to the application of revenue recognition standards under the applicable financial reporting framework, which led to a more comprehensive capture of project income during the period. Matracon reported an audited profit after tax of PKR 1.685 billion (FY24: 1.060 billion), supported by higher revenue from ongoing projects. The gross profit margin rose to 17.1% (FY24: 11.5%), reflecting effective cost management across the portfolio. The net profit margin was 6.8% (FY24: 7.4%), slightly lower than the previous year due to higher administrative and financing expenses, but still reflective of the Company’s stable financial performance.
Looking ahead, Matracon’s rating will continue to reflect its ability to generate consistent revenues, successful execution of existing and upcoming projects on schedule, and effective monitoring and collection of project receivables. Strengthening governance practices, particularly through a proactive and structured board, along with continued improvement in overall business performance, will remain key factors underpinning the Company’s long-term operational stability and rating.

About the Entity
Matracon Pakistan (Pvt) Ltd. was established by Mr. Mohammad Abdul Qadir in 1995 and later converted into a private limited company in 2006. The director roles are held by Mr. Mohammad Abdul Qadir and Mr. M. Ayub, who are the only board members and 'Active' shareholders. Mr. Jehanzeb Saulat continues to serve as the Chief Executive Officer of Matracon Pakistan (Private) Limited, while the finance function is overseen by the Chief Financial Officer, Mr. Akhwanzada Shahid Ali. For the fiscal year ended June 30, 2025, Ilyas Saeed & Co. provided an unqualified audit opinion on the Company's financial statements. The scope of work comprises the construction of roads, bridges, tunnels, canals, and drainage systems. Significant projects to its credit include several large-scale construction works, with a substantial portion successfully completed and the remainder comprising ongoing projects being executed with various Government and semi-Government departments.