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LCI records 46% YoY drop in earnings for 9MFY24

LCI records 46% YoY drop in earnings for 9MFY24
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April 24, 2024 (MLN): Lucky Core Industries Limited (PSX: LCI) reported its earnings for the nine months ended March 31, 2024, with a profit after tax of Rs7.93 billion [EPS: Rs85.89], marking a decrease of around 46% YoY compared to a profit of Rs14.63bn [EPS: Rs158.45] in the same period last year (SPLY).

Going by the results, the company's top line increased by 13.7% YoY to Rs91.28bn as compared to Rs80.31bn in SPLY.

The cost of sales also rose by 11.2% YoY but as the change was lesser than proportionate to sales growth, the gross profit surged by 23.7% YoY to Rs19.82bn in 9MFY24.

Accordingly, The gross margins improved to 21.71% as compared to 19.95% in SPLY.

On the expense side, the company observed an increase in Administrative and general expenses by 11.9% YoY and other expenses by 30.2% YoY to clock in at Rs1.86bn and Rs88.39m respectively during the review period.

The selling and distribution expenses stood dominant among expenses, surging by 35.93% YoY to Rs5.36bn in the nine months ended March 31, 2024 (9MFY24).

Costs towards worker welfare and profit participation fund also ticked higher to a figure of Rs186.37m and Rs325.19m during the review period.

The profit and loss account shows a major change in LCI's exchange section, where it reported an income of Rs131.6m against a major loss of Rs934.27m in 9MFY23.

However, during the review period, other income soared by 265.2% YoY to stand at Rs2.68bn in 9MFY24 as compared to Rs734.69m in SPLY.

The company’s finance cost expanded by 47.4% YoY and stood at Rs2.73bn as compared to Rs1.85bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs4.15bn against the Rs3.34bn paid in the corresponding period of last year, depicting an increase of 24.1% YoY.

The growth in sales was not significant enough to offset the rising costs for the company, ultimately leading to a major drop in profitability during the nine months ended March 31, 2024 (9MFY24).

Unconsolidated (un-audited) Financial Results for nine months ended March 31, 2024 (Rupees in '000)
  Mar 24 Mar 23 % Change
Sales – Net 91,280,824 80,308,826 13.66%
Cost of sales (71,459,521) (64,284,566) 11.16%
Gross Profit / (Loss) 19,821,303 16,024,260 23.70%
Administrative and general expenses (1,861,671) (1,663,233) 11.93%
Selling and distribution expenses (5,361,286) (3,944,182) 35.93%
Exchange gain / (loss) 131,595 (934,267)
Workers' profit participation fund (325,118) (283,586) 14.65%
Workers' welfare fund (186,370) (176,944) 5.33%
Other Income 2,682,964 734,690 265.18%
Other operating expenses (88,394) (67,908) 30.17%
Finance Cost (2,732,755) (1,854,069) 47.39%
Profit/ (Loss) before taxation 12,080,268 17,976,915
Taxation (4,147,111) (3,342,617) 24.07%
Net profit / (loss) for the period 7,933,157 14,634,298 -45.79%
Basic earnings/ (loss) per share  85.89 158.45

Amount in thousand except for EPS

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Posted on: 2024-04-24T10:19:12+05:00