Profit after tax of Lucky Cement increases over Rs 1.014 billion

The profit after tax of Lucky Cement Limited has increased to Rs 1,014.460 million in the quarter ended March 31, 2011 as compared to Rs 652.987 million earned in the corresponding period in 2010. The board of directors of the company in its meeting held here on Saturday declared that the company's earning per share has increased to Rs 3.14 in the period under review against Rs 2.02 in the same period a year back.
According to the financial results sent to Karachi Stock Exchange (KSE), the company's cumulative profit after tax for the nine months of current fiscal year FY11 has declined to Rs 2.475 billion translating in earning per share of Rs 7.65 as compared to Rs 2.560 billion with per share earning of Rs 7.92 earned in the same period last year.
The company said that the local sales revenue of the company increased by 55 percent during third quarter and 41.2 percent during cumulative nine months as compared to same period last year because of increase in sales volume and the prices of cement due to increase in production cost. Whereas the export sales revenue declined by 27 percent during third quarter and 21.8 percent during cumulative nine months as compared to the same period last year mainly because of company's shift to domestic sales.
The per ton cost of sales of the company increased by 22.33 percent during third quarter and 21.11 percent during cumulative nine months as compared to the same period last year. The major cost component is fuel and power comprising of coal and electricity which constitutes 63 percent of total production cost. The prices of coal in he international markets increased by 37.5 percent as compared to same period last year. Moreover, cost of power also increased significantly but timely impact of Waste Heat Recovery system resulted some benefits to the company. The other cost component of cement production also increased during the period under review.
The company achieved operating profit margins of 20.2 percent during third quarter and 17.8 percent during cumulative nine months as compared to same period last year. The finance cost of the company declined by 2.3 percent during third quarter and 1.6 percent during cumulative nine months of this financial year.
The company has accounted for a provision of deferred tax amounting to Rs 32 million during third quarter due to increase in the ratio of local sales revenue. The total provision of deferred tax liability so far provided in the balance sheet as on March 31, 2011 was Rs 1.595 billion.