LUCK’s net profits grow over 3-fold to 12.44 billion during 1HFY21

January 29, 2021 (MLN): Lucky Cement Limited (LUCK) has announced its financial results for the half-year ended on December 31, 2020. As per the results, the company witnessed a massive growth in its consolidated net profits by 3.2 times YoY to Rs 12.44 billion against Rs 3.92 billion reported in the same period last year.

This has translated into earnings per share which clocked in at Rs 32.05 in comparison to Rs 9.93 in the aforementioned period.

The increase in net profits was mainly attributable to an increase in net profitability of the cement segment ( Holding company ) which grew by 134% due to higher turnover supported by absorption of fixed costs and efficiencies achieved from the new production line in the North, as per the financial statement sent to PSX.

The increase in net profits of the holding company was also supported by a considerable increase in net profits of Lucky Motors Corporation on account of strong growth in automobile sales. Also, LCL Investment Holdings delivered a healthy performance owing to growth in sales volume, coupled with improved retention price and decrease in input costs from both Congo & Iraq Projects.

On a consolidated basis, the company achieved a gross turnover of PKR 123.72 billion which is 55.51 higher as compared to the same period last year's turnover of Rs 79.56 billion on the back of upsurge in economic activity duly supported by various initiatives introduced by govt and resumption of CPEC projects.  

In view of the higher net sales, as mentioned above, the gross profit of the company jumped by 109.5% despite a 48% YoY increase in the cost of sales during the period under review.

The overall expenses of the company increased: distribution cost by 24% YoY, administrative cost by 48% YoY. Meanwhile, the finance cost of the company dropped by 35.7% YoY to 761 million due to a lower interest rate regime.

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