January 30, 2023 (MLN): Lucky Cement Limited (PSX: LUCK) has disclosed its financial performance for the half-year that ended on December 31, 2022 today as per which the company posted net profits of Rs18.32 billion, up by 6.82% YoY against the profits of Rs17.15bn secured in 1HFY22.
This translates into earnings per share of Rs49.32 during the review period as compared to Rs40.66 in the same period last year (SPLY).
The increase in net profit of the group is due to the profitability of Lucky Electric Power Company Limited (LEPCL) versus a loss recorded in SPLY coupled with improved profitability of foreign cement operations.
Furthermore, this was partially offset by lower profitability from Lucky Motor Corporation (LMC) and Lucky Core Industries (LCI).
Accordingly, net sales of the company during the year surged by around 50.42% YoY, and the gross profit moved up by 53.86% YoY.
“The increase in gross revenue is mainly attributable to the commencement of commercial operations of Lucky Electric Power Company Limited in March 2022”, the report added.
During the half-year under review, LUCK’s overall gross sales revenue increased by 16.0% as compared to SPLY. Despite the reduction in volumes in both domestic and export sales, the profitability of the local cement operations showed improvement on account of enhanced operational efficiencies.
On December 22, 2022, the company announced the commencement of operations of Line-2, at Pezu Plant. This addition increases the production capacity of LUCK by 3.15mn tons per annum (MPTA), thereby, bringing the total to 15.30 MTPA.
Another successful milestone achieved during the period is the commencement of operations of a 34 MW solar power project at Pezu Plant on December 29, 2022. This investment aligns with our objectives to promote renewable energy, decrease the country's dependence on imported fuel and make the company more cost-efficient.
On the foreign operations side, despite global recessionary pressure, the group's foreign joint venture cement production facilities in Iraq and Congo continued to operate efficiently to add healthy profits to the profitability.
Luck’s administrative expenses decreased by 16.43% YoY, while its distribution cost slightly rose by 1.58% YoY, according to report.
The company’s other income went down by 8.10% to hit Rs3.08bn.
Moreover, the finance cost of the company increased by 1401.18% to clock in at Rs13.72bn as compared to Rs913.7 million recorded in 1HFY22.
On the taxation front, the company paid Rs4.28bn, up by 27.21% compared to the corresponding period last year.
| Consolidated Profit and Loss for the half-year ended December 31, 2022 ('000 Rupees) | |||
|---|---|---|---|
| 1HFY23 | 1HFY22 | % Change | |
| Revenue | 219,531,705 | 154,502,628 | 42.09% |
| Sales tax and excise duty | 29,090,478 | 25,216,229 | 15.36% |
| Rebates and commission | 4,851,648 | 5,906,646 | -17.86% |
| 33,942,126 | 31,122,875 | 9.06% | |
| Net sales | 185,589,579 | 123,379,753 | 50.42% |
| Cost of Sales | -146,526,046 | -97,991,358 | 49.53% |
| Gross Profit | 39,063,533 | 25,388,395 | 53.86% |
| Distribution cost | -5,262,641 | -5,180,555 | 1.58% |
| Administrative expenses | -2,863,401 | -3,426,342 | -16.43% |
| Finance cost | -13,715,554 | -913,650 | 1401.18% |
| Other expenses | -1,861,529 | -1,642,868 | 13.31% |
| Other income | 3,083,746 | 3,355,614 | -8.10% |
| Share of Profit | 3,650,206 | 2,936,473 | 24.31% |
| Profit before taxation | 22,094,360 | 20,517,067 | 7.69% |
| Taxation | -4278282 | -3363053 | 27.21% |
| Profit after taxation | 18,323,585 | 17,154,014 | 6.82% |
| Earnings per share – Basic and Diluted (Rupees) | 49.32 | 40.66 | 21.30% |
Copyright Mettis Link News
Posted on: 2023-01-30T10:15:35+05:00
