Lucky Cement demonstrates a YoY 17% increase in FY24-25 PAT

Pakistan's largest cement producer, Lucky Cement, announced its highest-ever consolidated profit after tax  of PKR76.9bn (US$27.12m), marking a 17 per cent increase YoY, with earnings per share of PKR52.50 for FY24-25. Alongside these results, the company declared its highest-ever dividend per share of PKR4.

In the first quarter, PAT was recorded at PKR19.6bn, a significant increase of 34 per cent YoY. According to AHL Research, which provided highlights of the results, Lucky Cement’s net revenue for FY24-25 reached PKR132.6bn, reflecting a nine per cent YoY growth. This increase in revenue was primarily driven by growth in local cement sales and Lucky Motors. The growth in local cement revenue resulted from higher export dispatches and improved domestic retention prices. At the same time, Lucky Motors experienced a revenue boost of 40-45 per cent due to increased volumetric auto sales.

In the first quarter, net revenue rose by 12 per cent YoY and eight per cent QoQ to PKR33.8bn. This increase in revenue is attributed to the expansion of local cement operations and the performance of Lucky Motors.

Gross margins for FY24-25 were recorded at 27.3 per cent, down from 30.1 per cent in FY23-24. In the first quarter, gross margins decreased to 24.2 per cent, compared to 29.7 per cent in the previous quarter.

Other income saw an increase of 27 per cent YoY, reaching PKR20.6bn in FY24-25, while in the first quarter, it surged by 148 per cent YoY to PKR 5.05bn. This rise in other income is largely due to higher short-term investments.

Finance costs in FY24-25 declined by 31 per cent YoY, amounting to PKR25.5bn. In the first quarter, finance costs dropped by 41 per cent YoY to PKR5.2bn. The reduction in finance costs for both FY24-25 and the first quarter is attributed to lower interest rates.

The effective tax rate for FY24-25 was 20.4 per cent, compared to 21.5 per cent in FY23-24. In the first quarter, the effective tax rate stood at 20 per cent, down from 26.2 per cent in the previous quarter.

by Abdul Rab Siddiqi, Pakistan.