Gross profit went up 10.7% as the company’s net sales revenue improved 11.8% to Rs19.57 billion. CREATIVE COMMONS
Lucky Cement, the largest cement-maker in Pakistan with over 18% market share, has recorded a 20% increase in net profit that stood at Rs5.16 billion in the first half of fiscal year 2013-14 compared to Rs4.29 billion in the same period of previous year.
Earnings per share (EPS) rose to Rs15.96 against an EPS of Rs13.27 in the first half of the previous year.
Gross profit went up 10.7% as the company’s net sales revenue improved 11.8% to Rs19.57 billion. In the first half of 2012-13, sales had totalled Rs17.51 billion.
Commenting on the results, Global Research in a report said revenues swelled in the wake of 10% year-on-year increase in domestic cement prices to about Rs490 per 50kg bag, 9% rise in total off-take and 10% depreciation of the rupee that pushed up exports in rupee terms.
However, it suggested that the company’s potential growth was marred by a reduced share of domestic cement sales – 60% against 64% last year – and a decline in export prices in dollar terms.
Other income surged 195% to Rs195 million in the second quarter (October-December) because of higher average cash balance of Rs6.6 billion that contributed to the company’s treasury income.
Domestic sales in the half-year period grew 4.3% to 1.9 million tons as opposed to 1.8 million tons in the same period last year. Exports grew at a much better pace, rising 19.1% to 1.2 million tons compared to one million tons a year earlier.
In 2012-13, Lucky Cement had notched up a record profit, standing at Rs9.71 billion, up 43% from earnings of Rs6.782 billion in FY12.
The company has also reported progress on ongoing projects including the commissioning of a waste heat recovery plant at its power generation units. It has installed a new vertical grinding mill at the Karachi plant in a bid to enhance productivity and reduce energy cost, and a Tyre Derived Fuel plant at its Pezu facility.
Lucky Cement’s joint venture investment in a cement-grinding mill in Iraq has started commercial production this month.
Published in The Express Tribune, February 27th, 2014.
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