Safe Mix Concrete Limited reported earnings per share of PKR 4.46 in FY24 against PKR 5.33 in FY23, a decrease of 16%. The company reported revenue of PKR 1.26 Bn in FY24 against PKR 1.43 Bn in FY23 showing a drop of 12%. Gross margin for FY24 clocked in at 21% down from 22% in FY23.
The management shared that it is expected that the government will be announcing a construction package soon. No further details were provided on this. It was also clarified that the reason for low capacity utilization of their batching plant was due to bottlenecks with regards to transit mixers and pumps to deliver the concrete at client’s sites.
The plant is capable of supplying to projects within a 25 km radius of it and as such the management has taken on multiple large clients in the area including Saima Builders, OK Builders, Javedan, Globe Residency and Rahat Residency.
It was also clarified that the reason for not targeting all projects of any one developer is to avoid concentration risk. The management also shared its outlook for the future where it expects that over the next 5 years it will reach earnings per share of PKR 5.83. This represents a CAGR of 5.5% till FY29.
Important Disclosures
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