Lucky Cement Limited is expected to show a 22 per cent YoY increase in its net earnings to PKR968m for the first half of the current financial year.
Analysts at Arif Habib Securities said in a report released on Thursday that the company’s earning per share is likely to be PKR3.67 for the above period mentioned. A 31 per cent increment in sales volume to 2.63Mt is expected to support the bottom line growth. Gross profit margins, however, are expected to go down to 25 per cent compared to 28 per cent in 1HFY07. Rising coal prices ($130/t c&f) is one of the main reasons for this decline.
Increased volumes resulted in a 33 per cent YoY increase in revenues to PKR 7.3bn.
The company has decided to further increase production capacity by 2.5Mta of clinker.
According to their calculations, Lucky’s turnover is likely to have surged by 33 per cent to PKR 7.343bn from PKR5.542bn in the same period of last year. Gross profit is expected to have increased by 19 per cent to PKR1.863bn from PKR1.569bn.