Lucky Cement third quarter profit lower

Lucky Cement third quarter profit lower
Published: 27 April 2009

Lucky Cement Ltd said third-quarter profit rose 70.4 percent on lower production costs and higher overseas demand.

Net income rose to PKR1.13bn (US$14m), or 3.51 rupees a share, in the three months ended March 31 from PKR665.3m, or 2.53 rupees, a year earlier, the Karachi-based cement maker said in a statement to the stock exchange today. Sales rose to PKR6.7bn from PKR4.66bn.

Production costs fell because coal, which fuels the plant, was less costly,” said Atif Zafar, research analyst at JS Global Capital Ltd., in Karachi, who has a “buy” recommendation on the stock. “Even though construction in the Middle East slowed, the lack of cement manufacturers there meant there was still buying from Pakistan.

Higher cement prices also helped increase profits, Zafar said. The average price for a bag of cement in Pakistan was about 320 rupees in the three months ended March 31, compared with about 220 rupees a bag a year earlier, according to JS Global.