Lucky Cement reported an unconsolidated net profit after tax (NPAT) of PKR13.5bn (US$48.2m) for 3QFY24-25, according to its filing with the Pakistan Stock Exchange.  Average local retention prices in the 3QFY24-25 stood at PKR14,500t while cement and clinker export prices stood at US$40 and US$30/t, respectively.

In terms of energy costss, management guided that weighted average coal prices were PKR35,000t during 3QFY24-25. Regarding the mix, the company's southern plant predominantly relies on imported coal, whereas the northern unit is more tilted toward local coal along with a small proportion of Afghan coal.

9MFY224-25
In the 9MFY24-25 the Pakistan-based cement producer posted an NPAT of PKR27.3bn, up a sharp 47 per cent YoY. The company’s local cement offtakes declined by seven per cent YoY to 4.5Mt in 9MFY24-25, down from 4.9Mt in the year-ago period, but maintained its market share at 16.5 per cent, according to reports by AKD Research. Export volumes surged by 76 per cent YoY to 2.5Mt from 1.5Mt in 9MFY23-24, driven by improved global demand and access to new export markets, including exports to the US. As a result, the company’s export market share increased to 39 per cent from 29 per cent in the equivalent period of the previous year.

During the 9MFY24-25, a 28.8MW captive wind power project at the southern plant was successfully commissioned. Following its commissioning, 55 per cent of the power requirement is now met through renewable sources, including waste heat recovery, solar and wind. In the southern plant battery storage is currently being installed, which would increase the efficiency of renewable projects.

In the foreign cement operations, the company reported that all plants in Iraq and the Democratic Republic of Congo are operating at optimum efficiency and higher utilisation levels, and have demonstrated robust performance in the 9MFY24-25.

Outlook
Looking ahead, management anticipates that the 4QFY24-25 will witness growth trends similar to those seen in 9MFY24-25. For the next year, it expects demand to remain stable or show moderate growth.

by Abdul Rab Siddiqi, Pakistan