January 25, 2024 (MLN): Lucky Core Industries Limited (PSX: LCI) unveiled its profitability for 6MFY24, wherein the profit after tax clocked in at Rs5.07 billion [EPS: Rs54.58] compared to a profit of Rs2.77bn [EPS: Rs29.96] reported in the same period last year (SPLY), reflecting a massive 83.35% YoY growth.
In addition to the financial results, the Board of Directors (BoD) have approved an interim cash dividend of Rs27 per share.
Going by the results, the company's net turnover went up by 21.12% YoY to Rs60.05bn as compared to Rs49.58bn in SPLY.
Similarly, the cost to sell also witnessed an increase of 16.33% YoY to Rs47.19bn. As the increase in sales was greater than proportionate to the rise in cost to sell, the gross profit improved by 42.66% YoY to Rs12.87bn in 6MFY24.
On the expense side, the two major costs were the Sales and Distribution expenses and Administrative expenses which stood at Rs3.506bn and Rs1.223bn respectively during the review period.
Additionally, the company incurred expenses on the Workers' Profit Participation Fund and Workers' Welfare Fund, totaling Rs206.116 million and Rs116.274 million, respectively. These figures represent increases of 33.93% and 62.26% YoY.
LCI experienced a reversal in its exchange section, reporting an exchange gain of Rs121.75m in 6MFY24, compared to an exchange loss of Rs205.93m in the SPLY.
One of the major driving forces of these improved earnings is the massive increase witnessed in the company's other income standing at Rs1.811bn compared to Rs211.68m in 6MFY23.
The company’s finance costs increased by 88.74% YoY and stood at Rs1.99bn as compared to Rs1.05bn in 6MFY23, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs2.59bn against the Rs1.28bn paid in the corresponding period of last year, depicting an increase of 2x YoY.
The company's business operations continued to face challenges as a consequence of inflationary pressures, higher tax incidence, and higher interest rates, coupled with an uncertain demand outlook.
Though there was some respite in the form of easing import restrictions, the prolonged monetary tightening measures have negatively impacted the consumers' purchasing power resulting in a significant demand compression across all segments of the economy.
| Consolidated (un-audited) Financial Results for six months ended December 31, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales | 60,053,543 | 49,582,407 | 21.12% |
| Cost of sales | (47,188,314) | (40,564,569) | 16.33% |
| Gross Profit | 12,865,229 | 9,017,838 | 42.66% |
| Sales and Distribution expenses | (3,506,501) | (2,636,129) | 33.02% |
| Administrative expenses | (1,223,375) | (1,022,674) | 19.63% |
| Exchange gain/ (loss) | 121,751 | (205,930) | – |
| Workers' profit participation fund | (206,116) | (153,903) | 33.93% |
| Workers' welfare fund | (116,274) | (71,659) | 62.26% |
| Share of loss from associate | (78,885) | 0 | – |
| Other Income | 1,811,259 | 211,682 | 755.65% |
| Other charges | (14,576) | (36,081) | -59.60% |
| Finance cost | (1,988,734) | (1,053,664) | 88.74% |
| Profit before taxation | 7,663,778 | 4,049,480 | 89.25% |
| Taxation | (2,590,661) | (1,282,573) | 101.99% |
| Net profit for the period | 5,073,117 | 2,766,907 | 83.35% |
| Basic earnings/ (loss) per share | 54.58 | 29.96 | – |
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Posted on: 2024-01-25T10:40:55+05:00
