Pakistan cement producer, Lucky Cement, on Monday reported a rise of 26.59 per cent in fiscal 2010/11 profit to PKR3.97bn (US$45.8m) over the previous year, as it managed to achieve a larger share in the domestic market that offset fall in exports.
The company announced a cash dividend of 40 per cent per share and said that it is establishing an international footprint by setting up a 1Mta in Congo under a joint venture.
Overall sales were down by 12.21 per cent to 5.82Mt as Pakistan’s cement industry saw a negative growth of 8.32 per cent, the company said. Lucky Cement’s local sales increased by 11.07 per cent to 3.46Mt as its market share rose to 15.76 per cent against 13.26 per cent last year.
The decline in domestic sales was due to devastating floods and the government’s lack of investment on infrastructure projects, it said. Export sales of the company plunged sharply by 32.9 per cent to 2.35Mt as demand in the Middle East countries collapsed.
Lucky Cement managed to increase gross margins to 33.5 per cent from 32.5 per cent last year.
Better local prices helped the company record net sales of PKR26bn, up by six per cent. Earning per share of the company rose to PKR12.28 against Rs9.7 during the corresponding period last year.