LUCK to report consolidated financials amidst ongoing expansion projects

December 05, 2018 (MLN): With the ongoing expansions of Lucky Cement in Automobiles, Power, Chemicals, Pharmaceuticals, Nutraceuticals and overseas Cement Operations, the giant cement producer is all set to become one of the leading Conglomerate in Pakistan, says a report by Elexir Securities.

However, keeping in view the intricacies of these projects as well as on-going state affairs, the expected contribution of local cement operations of the company is expected to fall by 25% by FY22. To provide a fruitful and positive projection of LUCK’s dynamic undertakings, the company will be publishing consolidated financials rather than unconsolidated ones.

Talking to Mettis Global on this development, Research analyst from Elexir Securities said that the slowdown in economy due to high cost of imported coal, interest rate lift off making house financing more expensive, further anticipated PKR/USD depreciation and pressure on cement prices on the back of upcoming competition in North has had a very limited impact on LUCK’s performance as compared to other cement producers in the industry, mainly due to diversification.

With a CAGR of 18%, LUCK is expected to attain a guaranteed contribution of more than 25% from Lucky Electric Power Company Limited (LEPCL) project which will start operations from FY22, she added.

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