Lucky Cement has become the 10th-largest producer in market capitalisation on the Pakistan Stock Exchange (PSX) and continues to lead the cement industry as the largest cement producer in the country. According to AKD Research, Lucky Cement commissioned its Pezu capacity expansion of 3.15Mta in late December 2022 in Khyber Pakhtunkhwa, with a total cement capacity of 15.3Mta, holding its mark as the largest cement producer of Pakistan.
Lucky Cement has 10.3Mta of cement capacity in the north and 5Mta in the south of Pakistan. With the last expansion, it is estimated that Lucky market’s share would reach 16.8 per cent in the current fiscal year, up from 15.3 per cent in the previous fiscal year.
Lucky uses 80/20 per cent of Afghan/local coal in its Pezu northern plant. The southern plant in Karachi uses imported coal. Moreover, the company is committed to adding 10-20 per cent of alternative fuel to the fuel mix of its Karachi works. The 25.3MW solar power plant under-construction in the south will come online in the second quarter of the next fiscal year.
Lucky Cement has a well-diversified portfolio outside its core power, autos, mobiles and chemicals operations. Moreover, the cement business is also hedged with operations in Iraq and DR Congo.
AHL Research has also reported that cement demand in Iraq and Congo remained robust despite global challenges. The company’s subsidiary in Najmat-Al-Samawah (Iraq) switched to natural gas from furnace oil to fire its kiln, which aided the venture’s profitability. In the future, strong demand in Congo is believed to benefit earnings. However, the depreciating currency of Iraq and high input costs may keep margins under pressure.
