AKD Research has just released an update on Lucky Cement Limited’s recent quarterly results. Here are the important points from the earnings announcement:
Lucky Cement Limited (LUCK) has disclosed its financial results for the third quarter of the fiscal year 2024 (3QFY24). The company reported unconsolidated earnings of PkR4.9 billion, translating to an EPS (earnings per share) of PkR16.9. This represents a decline from the previous quarter’s earnings of PkR6.8 billion (EPS: PkR23.1), marking a 27% quarter-on-quarter (QoQ) decrease in profitability.
Revenue Decline
The company’s total revenue, also known as the topline, stood at PkR27.5 billion for the quarter, down by 10% compared to the previous quarter. This decrease was mainly driven by a 10% QoQ decline in sales volumes during the period.
Gross Margin Contraction
Lucky Cement witnessed a contraction in gross margins, which decreased by 7.2 percentage points to 28.8% from 36.0% in the previous quarter. The decline in margins can be attributed to higher coal prices, increased power costs due to upward adjustments in gas prices, and a higher proportion of clinker exports in the sales mix.
Other Income
The company’s other income for the quarter was PkR2.9 million, reflecting a 6% QoQ decrease but an 84% year-on-year (YoY) increase. This rise in annual income is primarily due to higher interest rates and increased dividends from LCI (PkR1.4 billion compared to PkR0.5 billion in the same period last year).
Year-to-Date Performance
For the first nine months of the fiscal year 2024 (9MFY24), Lucky Cement’s unconsolidated earnings accumulated to PkR63.6 per share compared to PkR38.0 per share in the same period last year, marking a substantial increase of 67% YoY. This growth was driven by elevated gross margins and increased other income (up by 106% YoY).
Consolidated Earnings
On a consolidated basis, earnings for 3QFY24 amounted to PkR53.2 per share, down by 12% YoY. The decline can be attributed to lower earnings from core cement operations and potentially from foreign operations due to the appreciation of the domestic currency.
| PKR (mn) | 3QFY24 | 2QFY24 | QoQ | 3QFY23 | YoY | 9MFY24 | 9MFY23 | YoY |
|---|---|---|---|---|---|---|---|---|
| Sales | 27,523 | 30,499 | -10% | 25,015 | 10% | 87,404 | 70,348 | 24% |
| COGS | 19,591 | 19,509 | 0% | 18,543 | 6% | 57,651 | 51,354 | 12% |
| Gross Profit | 7,932 | 10,990 | -28% | 6,471 | 23% | 29,752 | 18,994 | 57% |
| Gross Margins | 28.8% | 36.0% | – | 25.9% | – | 34.0% | 27.0% | – |
| Opex | 2,446 | 2,543 | -4% | 1,714 | 43% | 7,212 | 5,287 | 36% |
| Other Income | 2,869 | 3,045 | -6% | 1,558 | 84% | 9,064 | 4,406 | 106% |
| Finance Cost | 389 | 424 | -8% | 185 | 110% | 1,195 | 798 | 50% |
| NPAT | 4,938 | 6,781 | -27% | 4,005 | 23% | 18,649 | 11,133 | 67% |
| EPS (PkR) | 16.9 | 23.1 | – | 13.7 | – | 63.6 | 38.0 | – |
| EPS (PkR) Consol | 53.2 | 60.2 | -12% | 71.8 | -26% | 173.8 | 126.1 | 38% |
| DPS (PkR) | – | – | – | – | – | – | – | – |
Disclaimer:
The information in this article is based on research by AKD Research. All efforts have been made to ensure the data represented in this article is as per the research report. This report should not be considered investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.
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