Lucky Cement profit in the six months ended on December 31, 2003, registered an increase of 89 percent because of higher sales and cut in borrowing costs.
The operating profits, before tax, improved to Rs 414 million during the half year ended December 31, 2003, as compared to Rs 220 million of the same period a year earlier.
Its net profit moved up to Rs 408 million, or 1.66 rupees a share, as compared with Rs 215 million or 0.88 rupee a share.
The company said that due to available tax losses, the company is presently paying turnover tax only. However, in view of the requirement of international accounting standard No 12, the company has made a provision of deferred tax of Rs 133 million.
The earnings per share of Lucky Cement appeared to be lower than other comparable units.
This is not because of its lower operating profit but because of its very high paid-up capital.
Lucky Cement's paid-up-capital stood at Rs 245 million, which is the highest in the current industry in terms of paid up capital per ton of capacity. It is expected that with the BMR and expansion of the capacity, Lucky capital leverage will increase and its ratio of earning to the number of outstanding shares.
Lucky has announced that the capacity of its existing two production lines is being increased from 5,000 tons per day cement to 6,000 tons per day by replacing the existing coolers and 'Raw Mill' by highly efficient and large capacity coolers and 'Raw Mills'.
Lucky also announced that it is constructing a third production line at existing site with a capacity to produce 3,600 tons clinker and 3,800 tons cement per day.
With the implementation of BMR of existing lines and the third one which will be online before the end of next year, Lucky Cement would become the largest cement producer of the country.
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