Lucky Cement rakes in Rs4.04b profit

Revenue rises 5% during Jul-Sep mainly on the back of growth in subsidiary’s sales

KARACHI: Lucky Cement has posted a consolidated net profit of Rs4.04 billion in the first quarter ended September 2016, up 16% compared to Rs3.48 billion in the corresponding period of previous year, according to a company notice sent to the Pakistan Stock Exchange (PSX) on Thursday.

Earnings per share rose to Rs11.69 in Jul-Sept 2016 against Rs10.20 in Jul-Sept 2015. Topline Securities, in its research report, commented that the result was above market estimates.

Lucky’s stock closed up 0.18% at Rs660.56 at the PSX. However, the benchmark KSE 100-share Index ended down 539 points or 1.35% at 39,987 points.

In 1QFY17, the cement manufacturer recorded consolidated revenues of Rs19.8 billion, higher by 5% year on year primarily due to a 9% revenue growth achieved by ICI Pakistan, a subsidiary of Lucky Cement.

The revenue growth was mainly the result of 37% higher revenues generated by ICI’s Life Science business. On a standalone basis, Lucky’s revenues rose 2% to Rs10.6 billion. Local cement sales showed an excellent year-on-year growth of 25% to 1.3 million tons in Jul-Sept 2016 while exports dropped 27% to 0.4 million tons.

The company, in its notice to PSX, mentioned that it had agreed to switch from imported coal to local coal for its 660-megawatt power project at Port Qasim.

The project is expected to achieve financial close by March 2017. Lucky is also engaged in negotiations with Sindh Engro Coal Mining Company for a long-term coal supply agreement for the Port Qasim plant.

Published in The Express Tribune, October 28^th, 2016.

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