Abdus Samad Habib leads SMCPL's resilient growth

Safe Mix Concrete Limited, known as SMCPL on the Pakistan Stock Exchange, has been a key player in the construction industry since its establishment in 2005. Initially a private limited company, SMCPL transitioned to a public limited company in 2007. The company's core focus lies in producing and selling ready mix concrete, building blocks, and undertaking construction projects ranging from factories to prefabricated buildings. As a part of the renowned Arif Habib Group, SMCPL plays a crucial role as the primary supplier of ready mix concrete for the group's flagship project, Naya Nazimabad.

Financial Snapshot and Shareholding Structure

As of June 30, 2023, SMCPL boasts 25 million outstanding shares held by 667 shareholders. The CEO, Mr. Abdus Samad Habib, commands the largest shareholding at 35.84%, closely followed by Mr. Arif Habib with 28.17%. Arif Habib Limited holds a 22.8% stake, while Banks, DFIs, and NBFIs collectively own 2.24% of the shares. Foreign general public holds 0.92% of the outstanding share capital, with the remaining shares dispersed among other shareholders.

Financial Performance and Resilience

SMCPL's financial journey has seen its fair share of ups and downs. In 2019, despite a 11% decrease in sales volume, the company managed to achieve a remarkable 49% growth in revenue. However, challenges arose due to high costs of raw materials and other expenses, leading to a notable decline in gross profit. The year 2020 presented further hurdles, with a significant drop in sales attributed to the completion of a major project and the adverse effects of the COVID-19 pandemic, resulting in a gross loss for the company.

However, 2021 marked a turning point for SMCPL as strategic operational adjustments, including production capacity reductions and stringent cost control measures, were implemented. These initiatives bore fruit, with the company rebounding to report a gross profit and a reduction in overall expenses compared to the previous year.

Conclusion

Safe Mix Concrete Limited's journey reflects the resilience and adaptability required to navigate the dynamic construction industry. Despite facing challenges, the company's strategic decisions and commitment to operational efficiency have positioned it for sustainable growth and success in the future.