Lucky Cement reports bumper growth in sales and profit in FY2023
ISLAMABAD: Lucky Cement Limited has reported a bumper growth in its sales and profit in the first nine months of the ongoing financial year, July 22 to March 2023.
The mega cement company demonstrated a remarkable performance with a surge of around 83% YoY to Rs48.53 billion, compared to Rs26.53bn [EPS: Rs64.07] in the same period last year (SPLY).
Despite the challenging situation due to the economic recession, higher interest rates, and increased production costs across all segments, Lucky Cement secured almost triple-digit growth in its profitability.
The company’s top line jumped by 32.07% YoY to stand at Rs286.04bn, compared to Rs216.58bn in SPLY, reflecting strong growth in revenue, Mettis Global reported today.
After deducting sales tax, excise duty, rebates, incentives, and commission, the company’s gross profit rose by an impressive 63.07% YoY to Rs64.99bn in 9MFY23, attributed to the company’s constant focus on cost and operational efficiencies.
Despite experiencing a decline in both domestic as well as export sales volumes, the operational profitability of the local cement operations exhibited progress owing to increased operational efficiencies.
During the period, the company announced Line-2 operations at Pezu Plant, increasing cement production capacity by 3.15 MTPA to 15.30 MTPA.
This expansion further reinforced the company’s rank as the largest manufacturer and exporter of cement and clinker in Pakistan.
The local cement production and sales statistics of the company for 9MFY23 were: Clinker Production up 30% YoY, dement production down 18.40% YoY, and cement/clinker sales down 23% YoY.
On the expense side, the distribution cost slightly decreased by 0.54% YoY, administrative expenses decreased by 18.10% YoY, whereas other expenses rose by 37.67% YoY.
Meanwhile, the finance costs of the company ballooned by 9.96x YoY to Rs21.68 million as compared to just Rs2.17m in SPLY, mainly due to higher interest rates.
However, the company’s other income grew by 30.78% YoY to Rs5.66bn in 9MFY23, which helped offset the increase in expenses and contributed to overall profitability.
On the taxation front, the company paid Rs7.99bn, compared to Rs5.16m paid in the corresponding period last year.
