Lucky Cement Posts 28.5% Decline in Net Profits in H1 FY2018-19

Lucky Cement Limited reported a consolidated net profit of Rs 6.13 billion for the half-year that ended on December 31, 2018, which is 28.50% lower than the Rs 8.57 billion profit it posted in the same period last year.

During the half year, the company achieved overall net sales of Rs 67.85 billion, up by 13.54% from Rs 59.76 billion, due to higher revenues from its subsidiary ICI Pakistan, said Topline Securities.

Overall, the Cement sector’s sales grew by 6.8% to reach 4.01 million tons during the half year under review. Export sales of the company doubled in the half year as they improved by 109% to reach 1.02 million tons compared to 0.49 million tons during the same period last year.

On the other hand, domestic sales volume saw a decline of 6.8% as construction activities were affected by a slowdown in the economy.

Lucky cement achieved a gross profit of Rs 11.69 billion, down by 11.17% from Rs 13.16 billion.

The cost of sales was reported at Rs 42 billion, up by 25.13% and standalone cost of the company increased by 14.2% mainly due to an increase in the prices of coal, packing material and fuel.

The company’s finance cost saw a massive increase of 146.5% to Rs 774 million from Rs 314 million, whereas the distribution cost of the company increased to Rs 2.83 billion from Rs 2.15 billion in the period. It also saw a decline in its other income and it was down by 12.33% to Rs 1.92 billion from Rs 2.19 billion.

The company’s earnings per share decreased to Rs 17.92 from Rs 24.47 compared to the same period last year.

LUCKY’S script at the bourse closed at Rs 469.27, up by Rs 1.45 with a turnover of 0.46 million shares on Thursday.

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