Lucky Cement reported a massive increase of 285.8% in its profit that reached Rs28.2 billion in the year ended June 30, 2021.
According to a notice sent to the Pakistan Stock Exchange on Monday, the company had registered a profit of Rs7.3 billion in the last fiscal year.
Earnings per share (EPS) of the company came in at Rs70.69 for FY21 compared to Rs18.96 in the previous year.
Out of the Rs28.2 billion earnings, Rs5.4 billion was attributable to non-controlling interest for the year ended June 30, 2021, as per the company report.
During the fourth quarter of FY21, the company announced an after-tax profit of Rs2.4 billion against Rs3.3 billion in the same period of last year.
Insight Research in its report stated, “The result is below our expectations.”
On a consolidated basis, the company achieved gross turnover of Rs267.7 billion, which was 64% higher as compared to last year’s turnover of Rs162.9 billion. During the year under review, the company’s consolidated net profit, attributable to owners of the holding company, increased 273% as compared to last year.
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The increase in net profit was attributable to a rise in earnings of all the group companies, the company said.
The after-tax profit of the cement segment - the holding company - grew 3.21 times during the year under review due to improved margins and sales volume. The increase in sales volume was attributable to the availability of newly commissioned increased capacity of line 1 for the full year versus six months in the previous year and the growth in cement demand in the local market on the back of increase in construction activities.
The consolidated net profit also grew due to a considerable increase in profit from cement operations of joint ventures outside of Pakistan and company’s other subsidiaries in Pakistan.
On a standalone basis, the company’s overall sales volume showed a double-digit growth of 30.7% to 9.96 million tons in fiscal year 2020-21. Local sales volume grew 38.3% to reach 7.56 million tons in comparison to 5.46 million tons in the previous year.
Also, the export sales volume of the company increased 11.3% to 2.41 million tons as compared to 2.16 million tons in the previous year. Despite the impact of Covid-19 pandemic, the 1.2-million-ton per annum Greenfield cement production facility in Samawah, Iraq successfully completed its trial production on March 10, 2021, the company said.
According to the statement, the company’s 660-megawatt coal-based power project at Port Qasim achieved completion status of approximately 98.7% by June 30, 2021.
Published in The Express Tribune, August 10th, 2021.
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