Lucky Cement is optimistic about future growth for the company, and will rely on exports and its overseas operations to boost sales. The Pakistani cement company achieved an overall growth of 5.6 per cent with total sales volume of 5.84Mt during the current nine months (9MFY18) as compared to 5.53Mt sold in same period last year. While local cement sales volume registered a growth of 16.9 per cent (north 19.7 per cent and south 13.7 per cent) to reach 5.04Mt, as compared to 4.31Mt during the same period last year.
Local clinker sales volumes declined by 79.5 per cent to 0.06Mt during the current nine months as compared to 0.29Mt in the same period last year. This resulted in the overall local sales growth of 10.9 per cent to reach 5.1Mt during the nine-month period, as compared to 4.6Mt during the same period last year. Export sales volume declined by 20.3 per cent to 0.74Mt during the current nine months, as compared to 0.93Mt in the year-ago period.
The company achieved after tax profit of PKR9801.7m (US$84.4m) during the nine months under as compared to PKR10,421.8m reported during the same period last year.
Overseas operations and exports
According to a report of local research house, Lucky Cement's backward integration in Iraq by setting up a 1.2Mta clinker production facility, at an estimated cost of US$109m by the end of CY19, would positively impact and improve the business margins of the company.
Experts have assumed a 12 per cent YoY growth in FY19 exports for Lucky Cement, due to the depreciation of the Pakistani rupee. New cement plant expansions in southern Pakistan would also play a critical role in the company's finances.
Meanwhile, the proposed 2.6Mta expansion at Pezu, Khyber Pakhtunkhwa, and expected recovery in Lucky Cement's Congo cement plant may also induce positively.
