Lucky Cement’s FY25 Final Quarter: Profit Down on Missing Dividend Boost

Lucky Cement (LUCK) closed FY25 with a mixed bag of results. For the April–June 2025 quarter, the company earned PKR 5.7 billion (EPS: PKR 3.9), a 39% drop compared to last year’s PKR 9.5 billion. The main reason? A big dividend cheque from its power subsidiary, LEPCL, that arrived last year’s 4Q never came this time; it was already booked in 3QFY25.

Sales and margins:

Despite the earnings dip, business performance on the ground was healthy. Revenue rose 7% YoY to PKR 30 billion, thanks to higher cement prices and a 3% increase in sales volumes. Gross margins improved to 35.6% from 32.4%, driven by cheaper coal and lower power costs due to more renewable energy usage.

Other income drop:

Other income fell 73% YoY to PKR 2 billion because of the missing LEPCL dividend. Last year’s 4Q had a PKR 6 billion boost from it.

Lower finance costs:

Finance costs dropped 33% YoY to PKR 257 million as interest rates eased.

Taxes bite harder:

The tax rate jumped to 36% from 31% last year due to the lack of non-taxable dividend income.

Full-year picture:

For FY25, Lucky Cement posted a profit of PKR 33.1 billion (EPS: PKR 22.6), up 18% from last year. The company announced a final dividend of PKR 4 per share.

Key takeaway:

LUCK’s operational performance remains solid, with better margins and growing sales. But without the dividend boost from its power arm in the last quarter, profits naturally took a hit.

Source: AKD Securities

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →