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
