Lucky Cement saw a significant profit rise in FY23-24

Lucky Cement Ltd posted its financial results for the 4QFY23-24 (April-June 2024) and FY23-24 (July 2023-June 2024) on the Pakistan Stock Exchange (PSX) website on 9 August, where it reported unconsolidated earnings of PKR28.107bn (US$100.9m), showcasing a jump of 105 per cent YoY. 

On a quarterly basis, net profit improved to PKR9.458bn compared to PKR2.59bn in the same period last year, a 265 per cent YoY rise. That said, consolidated earnings advanced by 34 per cent YoY, settling at PKR65.556bn in the FY23-24.

According to AHL Research, the company’s profit increased due to a rise in local and foreign cement operations, an increase in profitability from Lucky Electric Power Co, and a jump in other income.

The top line during the FY23-24 was PKR115.325bn, compared to PKR95.832bn in the year-ago period, a 20 per cent YoY jump. The revenue growth is due to higher retention prices and increased dispatches (up 16 per cent YoY). Moreover, during the 4QFY23-24, net sales climbed by 10 per cent YoY to settle at PKR27.921bn amid higher cement prices and a jump in offtake to 2.156Mt, up 12 per cent YoY. 

Selling and distribution expenses in the FY23-24 increased 46 per cent YoY to PKR7.77bn compared to the equivalent period of the previous year, owing to the implementation of axle load factor. In the 4QFY23-24, selling and distribution expenses surged 51 per cent to PKR2.129bn vis-à-vis PKR1.4bn due to the above reason. Other income in the FY23-24 jumped by 174 per cent YoY to record PKR16.575bn because of higher dividend income from subsidiaries.