April 28, 2022 (MLN): Lucky Cement Limited (PSX: LUCK) has announced its financial performance for the nine months ended on March 31, 2022 today as per which the company recorded net profits of Rs26.53 billion, which jumped by almost 19.8% YoY against the profits of Rs22.15bn secured in 9MFY21.
This translates into earnings per share of Rs64.07 during the review period as compared to Rs56.36 in the same period last year (SPLY).
Despite the challenges due to increasing production costs across all segments, the group has been able to secure double-digit growth in its profitability. This improvement in consolidated net profit has been mainly attributed to the impressive performance of the group’s chemicals business and overseas cement segment.
The group’s polyester, pharmaceutical and animal health segments were able to secure growths of 30.4%, 56.7% and 95.9% respectively in operating results, versus same period last year, on the back of enhanced volumes, better sales mix and new product launch in the pharmaceutical segment.
This increase is in addition to the one-off unrealized gain on the acquisition of controlling shares in NutriCo Pakistan amounting to Rs1.85 billion. While, the group's joint venture cement production facility in Samawah, Iraq, which started its commercial production in March 2021, has also added healthy profits to the Group's profitability.
During the outgoing quarter, a major milestone was achieved when Lucky Electric Power Company Limited – a wholly-owned subsidiary of Lucky Cement, achieved the Commercial Operations Date (COD) of its 660 MW coal-fired power project on March 21, 2022. The addition of 660 MW to the national grid will not only play a key role in increasing the energy security and prosperity of Pakistan but will also go on to reduce the cost of electricity and reliance on imported fuel in the long run after the completion of Phase III of SECMC in June 2023.
According to the LUCK’s financial results, net sales of the company during 9MFY22 surged by around 38% YoY but the gross margins have declined to 18% owing to the boom in coal prices along with other input costs amid the Russia-Ukraine conflict.
Meanwhile, the company’s finance income ballooned by 96% to Rs2.17bn during the said period under review. This increase might be due to a rate hike by the central bank.
On the taxation front, the company paid Rs5.17bn, up by 40.6% compared to the corresponding period last year.
|
Consolidated Profit and Loss for the nine months ended March 31, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Mar-22 |
Mar-21 |
% Change |
|
Gross Revenue |
265,698,737 |
202,460,151 |
31.2% |
|
Less: Sales tax and excise duty |
(40,092,286) |
(38,010,561) |
5.5% |
|
Rebates and commission |
(9,029,525) |
(7,655,032) |
18.0% |
|
Net revenue |
216,576,926 |
156,794,558 |
38.1% |
|
Cost of Sales |
(176,721,610) |
(121,587,518) |
45.3% |
|
Gross Profit |
39,855,316 |
35,207,040 |
13.2% |
|
Distribution cost |
(8,022,797) |
(6,984,508) |
14.9% |
|
Administrative expenses |
(5,497,819) |
(5,140,911) |
6.9% |
|
Finance cost |
(2,170,955) |
(1,106,838) |
96.1% |
|
Other expenses |
(2,614,762) |
(1,467,561) |
78.2% |
|
Other income |
4,331,412 |
2,025,527 |
113.8% |
|
Share of profit-joint ventures and associates |
5,817,308 |
3,293,873 |
76.6% |
|
Profit before taxation |
31,697,703 |
25,826,622 |
22.7% |
|
Taxation |
|
|
|
|
current |
(5,217,358) |
(3,375,290) |
54.6% |
|
Deferred |
52,207 |
(297,187) |
– |
|
|
(5,165,151) |
(3,672,477) |
40.6% |
|
Profit after taxation |
26,532,552 |
22,154,145 |
19.8% |
|
Earnings per share – Basic and Diluted (Rupees) |
64.07 |
56.36 |
13.7% |
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