The company was incorporated in Pakistan in September 1993 and its principal activity is manufacturing and marketing of cement.
Its manufacturing facilities are located in two provinces ie Pezu NWFP and Gadap Town Karachi (Sindh). Lucky Cement belongs to Yunus Brothers Group ('YB' Group) which is one of the largest business group of the country based in Karachi. The group is engaged in diversified manufacturing activities including textile spinning, weaving, processing, finishing, and stitching besides Portland cement and power generation. The group has done colossal work as a socially responsible corporate citizen as its Aziz Tabba Foundation is engaged in a number of projects which include: Tabba Heart Institute Karachi, Aziz Tabba Dialysis Centre Karachi, Women and Children Hospital, Ghazni Khel NWFP and Lucky Welfare Dispensary, Pezu NWFP.
The company is listed on all three stock exchanges and its shares are highly priced at the stock market. During the last 52 weeks the price of the share continued its upward trend from Rs 55.80 per share to Rs 125.30 per share (source: Daily Business Recorder Dated 20.06.2007).
During the period of nine months ended March 31, 2007 (9M 06-07), the company generated net sales at Rs 8.733 billion (9M 05-06: Rs 5.361 billion) registering 62.9% growth as compared to net sales posted in the same period last year (SPLY). The growth rate in sales in remarkable and is fuelled by still higher production increase rate by 106.04% in cement in the cumulative nine months period.
During this period, the total market share of the company shot up to 19.42% whereas the market share for Q32006-07 (the 3rd quarter ended on March 31, 2007), was 21.57%.
The prices of cement remained under pressure in the domestic market in some parts of Q3 2006-07. Because of this factor, the directors reported that the net retention per ton for the Q3 declined by 31.22% and for 9M by 27.36%.
The directors pointed out that due to economies of scale, and absorption of fixed cost with some discipline in production management, the average cost per ton declined in Q3 by 31.22% and in 9M by 27.36%.
On the other hand the prices of imported coal and packing material increased during the third quarter. The coal prices reached above US $80 C&F in the international markets which were US $65 C&F last year.
The cost per ton of financial charges, according to the company's third quarter report, works out to Rs 1.37 per ton for Q3 and Rs 156 per ton for 9M.
The cumulative earning per share for nine months under review was Rs 5.11 as compared to Rs 5.13 in SPLY. The directors were pleased to inform that the Supreme Court of Pakistan upheld the Judgement of the Peshawar High Court in favour of the company and the information is available in the report under review.
The second production facility is ideally located in the port city Karachi for export of cement.
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Performance Statistics (Mln Rs)
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Balance sheet ----As At----
March 31 June 30 2007 2006
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Un-audited Audited
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Share Capital Paid-up: 2,633.75 2,633.75
Reserves: 5,517.72 4,435.88
Shareholders Equity: 8,151.47 7,069.63
L.T. Debts: 8,552.73 10,156.60
Deferred Taxation: 1,661.99 1,435.62
Deferred Liabilities: 134.61 181.62
L.T. Deposits: 28.78 27.27
Current Liabilities: 6,098.61 4,891.97
Fixed Assets Tangible: 20,039.82 19.165.11
L.T. Deposits: 2.18 2.18
Current Assets: 4,586.19 4,595.42
Total Assets: 24,628.19 23,762.71
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Profit & Loss A/c for Nine Months ended
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----March 31---- 2007 2006
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Net Sales: 8,733.28 5,360.82
Gross Profit: 2,277.15 1,998.63
Operating Profit: 2,157.62 1,920.86
Other Income: 67.49 0.24
Finance (Cost): (524.44) (55.77)
Profit before Taxation: 1,615.24 1,771.95
Profit after Taxation: 1,345.21 1,350.19
Earning Per Share (Rs): 5.11 5.13
Share Price (Rs) on 19/06/2007: 121.50 -
Price/Earning Ratio: 23.78 -
Debt/Equity Ratio: 51:49 59:41
Current Ratio: 0.75 0.94
Gross Profit Margin (%): 26.07 37.28
Net Profit Margin (%): 15.40 25.19
R.O.A. (%): 5.45 5.68
R.O.E. (%): 16.50 19.10
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COMPANY INFORMATION: Chairman: Muhammad Yunus Tabba; Chief Executive: Muhammad Ali Tabba; Director & Finance Company Secretary: Muhammad Abid Ganatra FCA, FCMA, FCIS; Registered Office/Factory: Pezu, District Lakki Marwat NWFP; Website URL: www.lucky-cement.com; Production Facilities: 1. Pezu, NWFP; 2. 58 Km on Main Super Highway, Gadap Town Karachi (Sindh); Head Office: 6-A Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi.
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