January 30, 2020 (MLN): Lucky Cement Limited (LUCK) has announced its financial results for the half-year ended on December 31, 2019. As per the results, the company witnessed the decline in its consolidated net profits by 36.1% to Rs 3.92 billion against Rs 6.14 billion of the same period last year.
On a consolidated basis, the company achieved a gross turnover of PKR 79.56 billion, up by 17.2% as compared to the same period last year's turnover of Rs 67.85 billion which was mainly attributable to increase in export sales revenue by 6% to 1.08 million tons as compared to the same period last year.
Moreover, during the half-year under review, the cost of sales of the company increased by 21.6% YoY as compared to the same period last year owing to an exceptional increase in gas and other fuel prices, higher fixed costs absorption and higher transportation costs on input materials.
In view of the higher input costs, as mentioned above, the gross profit margins of the company declined from 17% to 12% during the period under review.
The overall expenses of the company increased: distribution cost by 32% YoY, administrative cost by 33% YoY and finance cost by 53.1% YoY.
On the other hand, the other income rose by 45.2% to Rs 2.79 billion while tax expenses decreased by 20.3% compared to the same period of last year.
The earnings per share of the company for the half-year ended December 31, 2019, have been reported Rs 9.93 in comparison to Rs 17.92 during the same period last year.
Accompanied by the result, the company highlighted the ongoing projects where 660MW coal-based power plant is in full swing with 60% of project completion to-date and COD target stands at Mar'21. Whereas, Greenfield expansion at Iraq of 1.2mn tons is expected to achieve commercial production by 2QFY21.
|
Consolidated Profit and Loss for the half-year ended December 31, 2019 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Dec-19 |
Dec-18 |
% Change |
|
Revenue |
79,558,047 |
67,854,061 |
17.2% |
|
Sales tax and excise duty |
(15,451,506) |
(11,301,849) |
36.7% |
|
Rebates and commission |
(3,367,235) |
(2,832,361) |
18.9% |
|
Net sales |
60,739,306 |
53,719,851 |
13.1% |
|
Cost of Sales |
(51,092,724) |
(42,020,952) |
21.6% |
|
Gross Profit |
9,646,582 |
11,698,899 |
-17.5% |
|
Distribution cost |
(3,749,366) |
(2,837,830) |
32.1% |
|
Administrative expenses |
(2,037,901) |
(1,531,627) |
33.1% |
|
Finance cost |
(1,185,524) |
(774,333) |
53.1% |
|
Other expenses |
(395,250) |
(901,980) |
-56.2% |
|
Other income |
2,792,289 |
1,923,716 |
45.2% |
|
Profit before taxation |
5,070,830 |
7,576,845 |
-33.1% |
|
Taxation |
|
|
|
|
current |
(1,402,122) |
(2,123,114) |
-34.0% |
|
Deferred |
254,107 |
683,531 |
-62.8% |
|
|
(1,148,015) |
(1,439,583) |
-20.3% |
|
Profit after taxation |
3,922,815 |
6,137,262 |
-36.1% |
|
Earnings per share – Basic and Diluted (Rupees) |
9.93 |
17.92 |
-44.6% |
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