Lucky Cement Achieves Highest-ever Profit

Lucky Cement Limited achieved its highest-ever profit after tax of Rs. 48.5 billion, for the nine months period tended March 31, 2023 of which Rs 11.6 billion is attributable to non-controlling interests

ISLAMABAD, (UrduPoint / Pakistan Point News - 2nd May, 2023 ) :Lucky Cement Limited achieved its highest-ever profit after tax of Rs. 48.5 billion, for the nine months period tended March 31, 2023 of which Rs 11.6 billion is attributable to non-controlling interests.

This represents an impressive 82.9% increase compared to the same period last year said a news release.

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

Moreover, following the successful completion of the Company's first buy-back of 10.0 million shares, the Company announced yet another buy-back of 23.8 million of its own shares.

This buy-back plan is subject to obtaining the necessary approval from the members of the Company. The Primary objective behind this strategic move is to bolster the Company's valuations.

By repurchasing its own shares, the Company aims to optimize its capital structure and unlock additional value for its stakeholders. This buy-back initiative showcases the Company's proactive approach in managing its financial resources, fostering investor confidence and reinforcing its commitment to maximizing long-term shareholder value. The Company has announced to hold an Extraordinary General Meeting of its members on May 24, 2023.

On a consolidated basis, the Company attained gross revenue of Rs. 340.1 billion showcasing a significant 28.0% increase compared to the revenue of Rs. 265.7 billion in the same period last year (SPLY).

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% as compared to the SPLY.

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 SPLY. 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", added the representative.

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.