Corporate results: Lucky Cement posts earnings of more than Rs12 billion

Profit goes up on the back of 4% dispatch growth, expansion in margins.

KARACHI: On the back of volumetric growth, Lucky Cement Limited - Pakistan’s largest cement-maker with more than 19% market share - boosted its net earnings by one-tenth to more than Rs12 billion in fiscal year 2014-15, according to a notice sent to the Karachi Stock Exchange (KSE) on Tuesday.

The company reported an after-tax profit of Rs12.43 billion or Rs38.4 per share for the year ended June 30, 2015, up 9.6% compared to Rs11.3 billion or Rs35.08 per share last year. The results were accompanied by a dividend of Rs9 per share for the year.

Following the result, the company’s stock appreciated by Rs17.20 or 3.4% to settle at Rs525.36 per share at the close of business on Tuesday with 527,100 shares changing hands.

The result was in line with market expectations, according to Zeeshan Afzal, Head of Research at Taurus Securities. He, however, added they were expecting a higher dividend of Rs10 per share.

Revenues improved by 3.9% to Rs44.8 billion compared to Rs43 billion in the previous year. The increase in net sales was attributable mainly to the increase in volumes, the company said in a press release.

Local sales registered a growth of 7% with 4.42 million tons compared to 4.13 million tons reported last year, whereas export sales showed a decline of 4.5% at 2.37 million tons compared to 2.48 million tons reported last year, the press release said.

“The growth in earnings was primarily on the back of 4% year-on-year dispatch growth, expansion in margins, which increased by 170 basis points, and 27% jump in other income,” BMA Capital said in its report.



DESIGN: NABEEL AHMED

The company also reported progress on its key foreign and local projects, which include a fully integrated cement manufacturing plant in the Democratic Republic of Congo, a 660-megawatt coal-based power project, a 50MW wind farm, electricity supply to Pesco and waste heat recovery at Pezu power plant, which is expected to be completed by the end of October this year

Published in The Express Tribune, September 9^th,  2015.

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