July-March period: Lucky Cement achieves its highest-ever Rs48.5bn PAT

KARACHI: Continuing its remarkable legacy of surpassing one milestone after another, on a consolidated basis, Lucky Cement Limited, achieved its highest-ever profit after tax of Rs 48.5 billion, for the nine months period ended March 31, 2023 of which Rs 11.6 billion is attributable to non-controlling interests. This represents an impressive 82.9 percent increase compared to the same period last year.

The resultant earnings per share (EPS) for the period comes out to Rs 115.24. The remarkable increase in profit includes gain on disposal made by Lucky Core Industries, a subsidiary company, of approximately 26.5 percent of the issued and paid-up share capital of NutriCo Morinaga (Private) Limited resulting in a gain of Rs 17.2 billion.

On a consolidated basis, the company attained gross revenue of Rs 340.1 billion showcasing a significant 28.0 percent increase compared to the revenue of Rs 265.7 billion in the same period last year. The noteworthy growth in gross revenue is mainly attributable to the commencement of commercial operations of Lucky Electric Power Company Limited in March 2022.

On an unconsolidated basis, the company reported gross revenue of Rs 91.5 billion, which signified an increase of 15.7 percent as compared to the same period last year. The company reported a net profit after tax of Rs 11.1 billion. Moreover, the EPS for the period is calculated at Rs 34.73, as compared to an EPS of Rs 34.97 during the same period last year.

This marginal decline in the company’s profitability is attributed to lower dividend income from subsidiaries during the current period.

Representative of Lucky Cement expressed gratitude for the company’s success and attributed it to the blessings of the Almighty, when contacted for comments on the financial results for the nine months ended March 31, 2023.

“Commencement of profitable operations of Lucky Electric Power Plant, part sale of Nutrico Morinaga, acquisition of Lotte Chemicals Pakistan, Capacity expansion of 3.15 MT in cement, addition of solar power plants for our own consumption and completion of share buyback were the major events in recent times for us. Our employees embody a deep-rooted sense of urgency to grow and operate efficiently, which is evident when you talk to any one of them,” the representative said.

Aligning with its growth strategy, the company had announced the commencement of operations of Line-2, at Pezu Plant on December 22, 2023.

This addition increases the production capacity of the company’s cement production by 3.15 Million Tons Per Annum (MTPA), thereby, bringing the total capacity to 15.30 MTPA.

After the successful completion of the aforesaid expansion, the company has further reinforced its rank and prominence as the largest manufacturer and exporter of cement and clinker in Pakistan.

Following the successful completion of the 34 MW solar power project, the company remains steadfast in its philosophy of creating value through investments in clean energy, has completed commercial negotiations for the 25 MW Solar Power Project at Karachi Plant and procurement process for the necessary equipment and materials has commenced.

The management expects to complete the project in 2Q FY24. These investments were in line with the company’s objectives to promote renewable energy, decrease the country’s dependence on imported fuel and to make the company more cost-efficient.

Copyright Business Recorder, 2023