Lucky Cement expected to post strong financial results

Pakistan cement manufacturers, listed in Pakistan’s Stock Exchange (PSX), are yet to start posting their financial results on the bourse for 2QFY23-24 and 1HFY23-24. Mixed results are expected, due to the high construction cost, cement bag and steel prices, unviable interest rates and peak inflation.

However, Lucky Cement Ltd ,which is scheduled to announce its 2QFY24 financial result on 25 January 2024, is forecast to lead the way. AHL Research forecasts the company to post a standalone profit after tax of PKR5.45bn (US$19.49m) in 2QFY23-24, against PKR3.27bn in the same period last year, depicting a 66 per cent YoY surge.

With this, the earnings for 1HFY23-24 are anticipated to settle at PKR12.38bn in contrast to PKR7.12bn in 1HFY23, registering a substantial jump of 74 per cent YoY.

The top line in 2QFY23-24 is projected to grow by 25 per cent YoY, given a hike in retention prices and a rise in the dispatches by eight per cent YoY, arriving at 2.119Mt during 2QFY23-24. Gross margins in 2QFY23-24 settled at 35 per cent vis-à-vis 25 per cent in the same period last year, amid augmented cement prices and a drop in coal prices.