Lucky Cement held its corporate briefing on 21 February to discuss its 2QFY24-25 operational and financial performance. The company reported a consolidated NPAT of PKR21.4bn (US$76.5m), up 22 per cent YoY. The cement business remains a stand-out performer, with strong profitability driven by lower coal prices and higher YoY cement prices.
According to a brief note from IMS Research on Lucky, the cement firm recorded domestic sales of 3Mt in 1HFY24-25, down 14 per cent YoY. This was driven by weak local industry offtake (down 10 per cent YoY) and a decline in market share to 16.4 per cent amid rising competition.
Export volumes surged almost double YoY to 1.8Mt in 1HFY24-25, outperforming the industry's 30 per cent growth. The main export markets are Africa, Sri Lanka, and Bangladesh.
Local cement demands
Cement demand for 2HFY24-25 is expected to be similar to 1HFY24-25, as lower prices will likely be offset by Ramadan and two Eids falling in 2HFY24-25. Regarding pricing, management stated that a rebound is expected once demand picks up. However, this may take time due to constraints on Public Sector Development Programme spending and the lagged impact of interest rate cuts.
Local retention prices in 1HFY24-25 were recorded at PKR16,000t, while export prices for clinker are US$30t (PKR8400t) and US$40t (PKR11,200t).
The 28.8MW wind power project, which cost PKR9bn, has been completed. This raises the renewable energy share in Lucky Cement’s power mix to 55 per cent, with the remainder sourced from conventional fuel sources.
by Abdul Rab Siddiqi, Pakistan
