LUCK's 1QFY24 profit crosses Rs19bn mark, up by 2.7x YoY

October 30, 2023 (MLN): Lucky Cement Limited (PSX: LUCK) experienced a significant rise of 2.7x YoY in its profitability in 1QFY24, clocking in its profit after tax (PAT) at Rs19.36 billion [EPS: Rs57.8] as compared to a PAT of Rs6.93bn [EPS: Rs16.85] in 1QFY23.

This noteworthy growth is attributed to increased profitability across all group companies, as well as improved performance in both local and foreign cement operations.

The top line of the company has surged to Rs104bn, registering a surge of around 15% YoY compared to the same period last year.

This is due to the increase in gross revenue of Lucky Cement's domestic sales and higher revenue from its subsidiaries, LEPCL and LCI.

It is important to mention that unprecedented rains and floods adversely affected the corresponding quarter last year. While domestic sales volumes climbed by 40%, export volumes saw a 25% increase.

A successful milestone was achieved during this quarter with the commencement of operations of a 25 MW solar power project at Karachi Plant on August 21, 2023.

Aligned with the company’s objectives, this investment aims to promote renewable energy, reduce the country's reliance on imported fuel, and make the company more cost-efficient.

With regards to the foreign cement’s operations, the cement production facilities in Iraq and Congo, operated under joint venture agreements, continued to bolster the Group's profitability.

Iraq's cement demand remained stable. Additionally, the full capacity utilization at Najmat-Al-Samawah, Iraq, and the conversion of the Kiln from HFO to Gas further enhanced the company's profitability.

Copyright Mettis Link News