Lucky Cement Limited reported a net profit of Rs 3.16 billion for the 1st quarter that ended September 31, 2018, which is 24.04% lower as compared to Rs 4.16 billion in the same period last year.
During the first quarter, the company achieved overall net sales of Rs 24.84 billion up by 10% from Rs 22.58 billion. Lucky cement achieved a gross profit of Rs 5.58 billion, down by 8.22% from Rs 6.08 billion.
The company achieved a gross turnover of Rs 31.32 billion which is 9.2% higher as compared to last year.
Cement industry of Pakistan grew by 4.5% to 10.81 million tons during the first quarter ended. The company achieved an overall growth of 4.9% with a total sales volume of 1.90 million tons during the first quarter as compared to 1.80 million tons sold last year.
The earnings per share of the company were Rs 9.14 as compared with Rs 11.90.
The cost of sales grew by 16.80% to Rs 19.25 billion as compared to last year which was mainly attributable to an increase in coal, packing material and other fuel prices.
Administrative expenses were up by 21.7% plus distribution cost also saw an increase of 36.7% and finance cost grew by 116.4%.
LUCKY’S script at the bourse was trading at Rs 495.08, up by Rs 23.57 with a turnover of 539,450 shares.
The company also updated its investors on various ongoing projects. The brownfield expansion of 26 million tons per day of cement factory at KPK is underway and is expected to complete by the last quarter of 2019.
On the other hand, the commercial operations of the coal-based power plant will start by 1st March 2021.
Kia motors started construction of the project in November 2017 and on 1st June 2018, KLM started its complete build up operations. It has opened company owned and 3rd party dealerships across the metro cities of Pakistan. The commercial production will begin in the 2nd quarter of 2019.
Looking forward, the prospects for Lucky Cement look bright as ever. The company is in a sweet spot to take advantage of infrastructure development projects across the country.