Lucky Cement Ltd posted its financial result for 1HFY24 at the Pakistan Stock Exchange (PSX) on 26 January. The company announced unconsolidated earnings of PKR13.710bn (US$49m), showcasing a hefty jump of 92 per cent YoY. Gross sales increased to PKR79.26bn from PKR58.70bn over the same period.

The company has decided to undertake a 28.8MW wind power project at the Karachi plant. The project is expected to be completed by 1QFY25. The company is also expected to increase solar capacities at the Karachi and Pezu plants by 6.3MW and 6MW, respectively. This will take its solar capacity to 74.3MW.

Meanwhile, Lucky Cement has completed its second buyback and purchased 20.4m ordinary shares out of the initial announcement of 23.8m.

Cement performance
Local cement demand in Pakistan recorded modest growth of one per cent YoY, reaching 20.24Mt for the half year ended December 31, 2023, versus 20.03Mt during the same period last year.

Notably, exports witnessed a substantial surge of 110.7 per cent, totalling 3.65Mt during the 1HFY24, up from 1.7Mt in 1HFY23. Consequently, the overall industry volume grew by 9.8 per cent, reaching 23.89Mt in the period under review compared to 21.76Mt in the same period last year. This boost in sales volumes can be attributed to the increased viability of exports and a lower base of domestic sales in the previous year, which was impacted by widespread rains, unprecedented floods, and an overall economic slowdown.

Compared to the local cement industry, Lucky Cement experienced a 23.4 per cent increase in overall sales volume, reaching 4.4Mt, compared to 3.6Mt in the same period last year. Local sales volume grew by 16.3 per cent, reaching 3.5Mt during 1HFY24, compared to 3.0Mt in the same period the previous year. Furthermore, export volumes increased by 59.4 per cent to 0.94Mt during the period under review, in contrast to 0.59Mt in the same period last year.

Foreign cement operations
The cement production facilities in Iraq and Congo, operated under joint venture agreements, continued to enhance the group's profitability with increased margins. Iraq's cement demand improved, while Congo’s demand remained stable. Additionally, full capacity utilisation at Najmat-Al-Samawah, in Iraq, and the conversion of the kiln from heavy fuel oil (HFO) to gas further boosted the company's profitability.