Profit after tax of Lucky Cement increases to Rs6.782bn

RECORDER REPORT

KARACHI: The profit after tax of Lucky Cement Limited has increased to Rs 6.782 billion in the year ended June 30, 2012 (FY12) as compared to Rs 3.970 billion earned in FY11.

The company’s earning per share increased to Rs 20.97 in the period under review against Rs 12.28 in the same period last year, up 71 percent.

The board of directors of the company in its meeting held here on Wednesday recommended full and final cash dividend of Rs 6 per share.

According to the financial results sent to Karachi Stock Exchange, the company’s gross sales increased to Rs 39.123 billion in FY12 against Rs 31.767 billion in FY11. The company paid Rs 5.485 billion as sales tax and excise duty in this period against Rs 5.545 billion paid in the same account last year.

The company’s cost of sales increased to Rs 20.601 billion in FY12 against Rs 7.306 billion in FY11.

“The extraordinary growth in earnings during FY12, primarily stems from better retention prices in local market which led to improved margins (up 4.7pps to 38.2 percent) during FY12”, Farhan Mahmood, senior analyst at Topline Securities said.

Thus, company’s net revenues grew by impressive 28 percent to Rs 33 billion, primarily due to higher retention prices and 3 percent jump in overall volumetric sales (local volume sales up 7 percent while exports down 4 percent), he added.

Moreover, he said, distribution expenses remained flat while 51 percent decline in financial expenses to Rs 253 million also supported bottom-line growth. The decline in financial charges is primarily due to retirement of its loan particularly short-term loan of Rs 6.3 billion during FY12. Thus, the company has cash balance of Rs 0.8 billion as at June end 2012.

Alone in the fourth quarter of FY12, company posted EPS of Rs 6.5, up 41 percent compared to EPS of Rs 4.6 during the same quarter last year. Had there been no deferred tax booked in the fourth quarter, company’s EPS would have been higher by Rs 1.5 per share.