August 5, 2022 (MLN): Lucky Cement Limited (LUCK) has reported a 29% increase in net profits during FY22 from Rs28.2 billion (EPS: 70.69) in FY21 to Rs36.4bn, translating into an EPS of Rs91.22.
Despite the challenges due to economic slowdown, higher interest rates and increased production costs across all segments, the company has been able to secure double-digit growth in its profitability mainly on the back of better return on power business.
Moreover, the incidence of 10% super tax did not significantly impact FY22 earnings since most of the businesses (Power, car, mobile) are exempted from income tax.
During the period, the company’s top-line jumped by 60% YoY due to higher cement prices which neutralized the impact of the decline in offtake by 9%YoY.
However, gross margins of the company declined to 19% from 23% a year earlier owing to higher other input costs amid the Russia-Ukraine conflict, and a boom in coal prices where it touched an all-time high of $460/ton in March’22 while on average it jumped by 168%YoY to $212/ton in FY22.
Albeit margins came down, a 150.6% YoY jump in other income to Rs7.3 supported the bottom line, aided by a one-off technical fee from the JV in Africa and dividend income of Rs3.5bn from Lucky Motors, ICI, Lucky Holdings and Yunus Energy.
Meanwhile, the company’s finance cost ballooned by 384.7% to Rs7bn during FY22. This increase might be due to a rate hike by the central bank.
On the taxation front, the company paid Rs10.6bn, up by 122.4% YoY compared to the corresponding period last year. Accordingly, the effective tax rate came in at 23% against 14% in FY21.
Following the announcement of financial results, the company’s stock closed at a price of Rs466.15, up by Rs13.98 or 3% from yesterday’s price.
|
Consolidated Profit and Loss for the Year ended June 30, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-22 |
Jun-22 |
% Change |
|
Revenue |
402,158,149 |
267,725,109 |
50.2% |
|
Sales tax and excise duty |
(58,345,772) |
(50,261,392) |
16.1% |
|
Rebates and commissions |
(12,350,263) |
(10,304,844) |
19.8% |
|
Net sales |
331,462,114 |
207,158,873 |
60.0% |
|
Cost of Sales |
(268,290,618) |
(159,613,718) |
68.1% |
|
Gross Profit |
63,171,496 |
47,545,155 |
32.9% |
|
Distribution cost |
(11,824,700) |
(10,021,626) |
18.0% |
|
Administrative expenses |
(5,760,738) |
(5,509,068) |
4.6% |
|
Finance cost |
(7,095,208) |
(1,463,781) |
384.7% |
|
Other expenses |
(4,465,504) |
(4,915,446) |
-9.2% |
|
Other income |
7,336,630 |
2,927,644 |
150.6% |
|
Share of profits- joint ventures and associates |
5,674,108 |
4,438,860 |
27.8% |
|
Profit before taxation |
47,036,084 |
33,001,738 |
42.5% |
|
Taxation |
(10,613,414) |
(4,772,814) |
122.4% |
|
Profit after taxation |
36,422,670 |
28,228,924 |
29.0% |
|
Earnings per share – Basic and Diluted (Rupees) |
91.22 |
70.69 |
29.0% |
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Posted on:2022-08-05T17:07:17+05:00
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