Despite successive decline in its exports, Lucky Cement has managed to continue on an upward sales trajectory thanks to growing demand within the country. In the first nine months of FY16, its local sales volume stands at 3.88 million tons which is almost 22 percent higher than this tally in the same period of the previous fiscal.
However, weaker exports have dented the cumulative sales due to a drop of nearly 34 percent to 1.23 million tons, in the same period. Meanwhile cement prices in the domestic market have helped firm, such that Lucky has reported a top line growth of one percent in 9MFY16 when compared to 9MFY15.
While cost of sales notched higher in the most recent quarter, it has dropped by five percent over the first nine months. According to the companys detailed result announcement, this decline is attributable to lower prices of coal and other fuels as well as contributions from its waste heat recovery plants in Karachi and Pezu. Thus the bottom line has improved by three percent year-over-year, to reach Rs9.6 billion while net margin has improved by six basis points over the same period.
Along with this result announcement, the company has also shared details regarding ongoing projects and plans. It has informed that talks are ongoing with the Government of Punjab for the acquisition of land to set up a new, green field cement plant.
The company is also in search of necessary equipment for this plant and expects to complete both tasks by June of this year. Among other projects, its investment in a 50 megawatt wind farm is also near fruition as it reports that "major construction activities have been completed and the project has entered the final phase of implementation".
The companys management expects the project to be operational by this June.
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