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Perth
October 24, 2019
Business Latest Pakistan

Lucky Cement posts Rs9.26bn net profit in nine months of FY2019

KARACHI: On a consolidated basis, Lucky Cement Limited reported net profit after tax of PKR 9.26 billion after taking out PKR 0.74 billion attributable to non-controlling interests for the nine months ended March 31, 2019, which translates into earnings per share (EPS) of PKR 28.64 / share as compared to PKR 36.91 / share reported during the same period last year.

Further, on a consolidated basis, the Company achieved gross turnover of PKR 103.32 billion which is 11.6 percent higher as compared to the same period last year’s turnover of PKR 92.60 billion.

On a standlaone basis Company’s overall sales volumes grew by 1.9 percent to reach 5.95 million tons during the nine months of the current financial year. The local cement sales volume registered a decline of 12.2 percent to come to 4.42 million tons in comparison to 5.04 million tons last year and the export sales volumes of the Company improved by 105.5% to reach 1.53 million tons as compared to 0.74 million tons during the same period last year.

Further, with regards to the Company’s standalone financial performance, the gross sales revenue increased by 3.3% to PKR 52.32 billion compared to PKR 50.63 billion reported during the same period last year. The increase in revenue was mainly due to higher export volumes for clinker. Furthermore, Lucky Cement recorded net profit after tax of PKR 8.30 billion, which is 15.4% lower as compared to the same period last year. Similarly, the standalone EPS of the Company is PKR 25.65 / share as compared to the same period last year’s reported EPS of PKR 30.31 / share.

Lucky Cement also shared progress on its brownfield expansion for cement production of 2.6 million tons per annum at its Pezu Plant and the greenfield investment project for producing 1.2 million tons of clinker at Samawah, Iraq. In addition, the Company also reported progress on its investment projects of 1 X 660 MW supercritical coal-based power project at Port Qasim and automobile manufacturing plant under license from Kia Motors Corporation.

Lucky Cement remains committed towards improvement in the society and the communities in which it operates. In this regard, the Company extended numerous scholarships to deserving students for various leading universities in Pakistan and abroad. Keeping in view the importance and impact of women empowerment in Pakistan, the Company in collaboration with Zindagi Trust continued its support for two leading Government girls’ schools in Karachi. Providing quality healthcare has always been the company’s priority and in this regard, the company continued its support to Aziz Tabba Foundation and also donated to Shaukat Khanum Memorial Cancer Hospital and Pakistan Welfare Association of the Blind. Lucky Cement always takes serious responsibility towards the environment and in an effort to further highlight the importance of environment conservation, the company continued with its tree plantation drive in and around its manufacturing sites.

With the prevailing economic uncertainties and macro-economic situation, Lucky Cement believes that in short to medium-term, the outlook of the Cement industry will be challenging for domestic sales. However, exports, sales are expected to remain strong in view of favourable market dynamics and increasing demand for Clinker in the regional countries.

In the long-term, Lucky Cement believes that Cement Industry’s outlook is promising on account of Government’s key initiatives to build both small and mega-capacity / multipurpose water reservoirs/dams and construction of low-cost affordable houses for the public at large.