Lucky Cement Ltd announced its financial results for the 9MFY23-24 on the Pakistan Stock Exchange website on 29 April. It posted unconsolidated earnings of PKR18.649bn (US$67m), a significant advance of 67 per cent YoY. Earnings per share (EPS) stood at PKR63.65. 

According to results from AHL Research, the top line in the 9MFY23-24 was PKR87.404bn, in contrast to PKR70.348bn in the equivalent period of the previous year, up 24 per cent YoY. The revenue growth comes from higher retention prices and increased dispatches (up 18 per cent YoY).

Selling and distribution expenses in the 9MFY23-24 witnessed a 44 per cent YoY growth to PKR5.645bn, owing to the implementation of axle load factor.

Other income in the 9MFY23-24 jumped by 106 per cent YoY due to higher dividend income from LCI and LMC.

Finance costs in the 9MFY23-24 increased by 50 per cent YoY to PKR1.195bn, which is attributable to the higher interest rate.

3QFY23-24 results

On a quarterly basis, the unconsolidated net profit arrived at PKR4.938bn compared to PKR4.005bn in the 3QFY22-23, representing a rise of 23 per cent YoY. EPS advanced to PKR16.85 from PKR12.78 over the same period.

Moreover, in the  3QFY23-24, net sales climbed by 10 per cent YoY to settle at PKR27.523bn amid higher cement prices.

In the 3QFY23-24 selling and distribution expenses arrived at PKR1.899bn when compared with PKR1.262bn, up 50 per cent YoY due to the implementation of the axle load factor.

The dividend received from LCI in the 3QFY23-24 was the primary reason for other income climbing by 84 per cent YoY to PKR2.869bn.  The finance cost increased by 110 per cent YoY PKR389m, displaying a 110 per cent YoY jump due to higher interest rates.

The company booked effective taxation at 31 per cent in the 3QFY23-24 when compared with 29 per cent in 3QFY22-23.

The company has embarked on a 28.8MW wind power project at the Karachi plant, which is expected to be completed by the 1QFY24-25.

The company will also likely increase solar capacities at the Karachi and Pezu plants by 6.3MW and 6MW, respectively, taking solar capacity to 74.3MW. The project is expected to be concluded by the end of FY23-24.