January 30, 2019 (MLN): Lucky Cement Limited (LUCK) is scheduled to unveil its 1HFY19 earnings tomorrow i.e. January 31, 2019.
LUCK’s earnings for 1HFY19 ended December 31st 2018 is expected to fall due to lower gross margins and higher distribution cost.
Based on market expectations derive from below forecasts, LUCK’s after tax profit for 1HFY19 turns out to be locked in between Rs.4.8 billion to Rs.5.3 billion with EPS ranging from Rs.14.9 to Rs.16.5. Meanwhile in 2QFY19 the company is likely to post a profit in between Rs.2.3 billion to Rs.2.8 billion with EPS ranging from Rs.7 to Rs.8.8.
|
Brokerage House |
2QFY19 |
% change YoY |
1HFY19 |
% change YoY |
|
Ismail Iqbal Securities |
PKR 2,837 mn (EPS: PKR 8.77) |
down by 20% YoY |
PKR 5,330 mn (EPS: PKR 16.48) |
down by 19% YoY |
|
Arif Habib Limited |
PKR 2,771 mn (EPS: PKR 8.57) |
down by 22% YoY |
PKR 5,264 mn (EPS: PKR 16.28) |
down by 20.25% YoY |
|
BIPL Securities |
PKR 2.8 bn (EPS: PKR 8.5) |
down by 22%YoY |
PKR 5.3 bn (EPS: PKR 16.3) |
down by 20% YoY. |
|
Pearl Securities Limited |
PKR 2,322 mn (EPS: PKR 7.18) |
down by 34%YoY |
PKR 4,815 mn (EPS: PKR 14.89) |
down by 26% YoY. |
|
Spectrum Securities Limited |
PKR 2.7 bn (EPS: PKR 8.29) |
down by 24% YoY |
PKR 5,175 mn (EPS: PKR 16) |
down by 21% YoY. |
Ms. Misha Zahid at Arif Habib Limited says that the PKR devaluation and lower gross margins due to higher coal prices likely to drag down LUCK’s earnings.
Meanwhile, Ms. Ayesha Fayyaz at BIPL Securities expects that the decline in profitability is primarily accredited to lower gross margins, higher fuel expense and increase in distribution cost as a result of surge in exports.
In line with these expectations, Mr. Ajay Kumar at Ismail Iqbal Securities states that despite an expected increase in company’s topline earnings, the low margins clinker sale likely to pull down company’s profitability.
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