Lucky Cement announces consolidate earnings of Rs26.53bn for 9M 2021-22

KARACHI: On a consolidated basis, Lucky Cement Limited reported the profit after tax to date of Rs26.53 billion of which Rs5.81 billion is attributable to non-controlling interests for the nine months ended March 31, 2022. This translates into Earnings Per Share (EPS) of Rs64.07/share as compared to Rs56.36/share reported during the same period last year.

Further, on a consolidated basis, the Company achieved gross turnover of Rs265.70 billion which is 31.2 percent higher as compared to the same period last year’s turnover of Rs202.46 billion. During the 9M 2021-22 under review, the Company’s consolidated net profit (attributable to owners’ of the Holding Company) increased by 13.7 percent as compared to the same period last year. Despite the challenges due to increasing production costs across all segments, the Group has been able to secure double-digit growth in its profitability.

The increase in Net Profit was mainly attributable to impressive performance of the Group’s chemicals business and overseas cement segment.

The Group’s Polyester, Pharmaceutical and Animal Health segments were able to secure growths of 30.4 percent, 56.7 percent and 95.9 percent respectively in operating results, versus same period last year, on the back of enhanced volumes, better sales mix and new product launches in the pharmaceutical segment.

This increase is in addition to the one-off unrealized gain on acquisition of controlling shares in NutriCo Pakistan amounting to Rs1.85 billion. On the other hand, the Group’s joint venture cement production facility in Samawah, Iraq, which started its commercial production in March 2021, has also added healthy profits to the Group’s profitability.

During the outgoing quarter, a major milestone was achieved when Lucky Electric Power Company Limited - a wholly owned subsidiary of Lucky Cement, achieved the Commercial Operations Date (COD) of its 660MW coal-fired power project on March 21, 2022.

The addition of 660MW to the national grid will not only play a key role in increasing the energy security and prosperity of Pakistan but will also go on to reduce the cost of electricity and reliance on imported fuel in the long run after the completion of Phase III of SECMC in June 2023.

On unconsolidated basis Company’s local sales volumes posted a decline of 3.4 percent to reach 5.51 million tons during 9M 2021-22. The marginal decline for the Company versus negligible change in the industry numbers was mainly due to other cement plants becoming operational in the current period.

Moreover, the export sales volumes of the Company decreased by 18.0 percent to 1.56 million tons compared to 1.90 million tons during the same period last year, on the back of continuous volatility in international coal prices and exorbitantly high freight costs globally. Hence, overall sales volumes of the Company declined by 7.1 percent to reach 7.07 million tons during 9M 2021-22.

Further, with regards to Company’s unconsolidated financial performance, the gross sales revenue increased by 19.6 percent as compared to the same period last year. Per ton cost of sales of the Company increased by 49.1 percent as compared to the same period last year.

This was mainly due to substantial increase in coal prices along with other input costs, which was a direct result of international commodity super cycle followed by the continuing conflict between Russia and Ukraine.

Lucky Cement recorded net profit after tax of Rs11.31 billion. It includes amount of Rs1.48 billion as fee for provision of technical services to Nyumba Ya Akiba, Company’s joint venture in Democratic Republic of Congo during the current financial year. The standalone EPS of the Company is Rs34.97/share as compared to the same period last year’s reported EPS of Rs36.14/share.

A recent testament of its commitment for energy conservation and promotion of green energy resources was the launch of a 34MW captive solar power project with 5.589MW Reflex energy storage to be installed at Pezu plant in Khyber Pakhtunkhwa.

Copyright Business Recorder, 2022