Lucky Cement earned a net profit of PKR13.7bn in FY22-23

Lucky Cement earned an after-tax profit of PKR13.7bn (US$47,687m) in FY22-23 as compared to PKR15.3bn reported last year, mainly on account of higher tax charges because of the levy of super tax at 10 per cent on a perpetual basis in the Finance Act 2023. 

Lucky informed the Pakistan Stock Exchange (PSX) that its gross sales revenue increased by 15.9 per cent compared to last year. Although the local sales volumes declined by 14.9 per cent, the sales revenue increased by 16.9 per cent (PKR112.1bn vs PKR95.9bn), mainly due to higher cement prices due to higher input costs. Likewise, while the export volumes declined by 34.7 per cent, the export gross sales revenue were up by 7.6 per cent (PKR13.7bn vs. PKR12.7bn) due to the depreciation of Pakistani rupee against the US dollar. The company is also in the process of implementing a 25MW solar power project at the Karachi plant. 

Cement production
Lucky Cement’s overall sales volumes declined by 18.8 per cent to reach 7.4Mt during the year ended 30 June 2023, compared to 9.1Mt last year. The local sales volume dropped by 14.9 per cent to reach 6.2Mt in the current year compared to 7.3Mt last year due to a downturn in dement demand. Furthermore, as a result of various factors, the company's export sales volume reduced to 1.2Mt in the current year compared to 1.8Mt in the previous year. 

Iraq plant
Lucky Cement is a planing a 1.82Mta clinker capacity expansion project in Samawah, Iraq, to keep pace with the increasing demand for cement in Iraq. The construction activity on the project is expected to commence within 1QFY24 and be completed in 18 months.