{"id":7308,"date":"2025-02-04T13:41:05","date_gmt":"2025-02-04T08:41:05","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=7308"},"modified":"2025-02-12T17:11:28","modified_gmt":"2025-02-12T12:11:28","slug":"lucky-cement-luck-2qfy25-earnings-review-strong-growth-in-profitability","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/lucky-cement-luck-2qfy25-earnings-review-strong-growth-in-profitability\/","title":{"rendered":"Lucky Cement (LUCK) 2QFY25 Earnings Review: Strong Growth in Profitability"},"content":{"rendered":"\n

Lucky Cement Limited (LUCK<\/strong>) has reported strong financial results<\/strong> for 2QFY25<\/strong>, with earnings per share (EPS) reaching PKR 73.17<\/strong>, reflecting a 22% YoY and 20% QoQ growth<\/strong>. Consolidated net profitability surged to PKR 21.4 billion, compared to PKR 11.8 billion (EPS PKR 40.3) in the same period last year.<\/p>\n\n\n\n

This impressive performance has pushed 1HFY25 profitability to PKR 39.3 billion (EPS PKR 134.6), marking an 11% YoY increase<\/strong> from PKR 35.3 billion in 1HFY24.<\/p>\n\n\n\n

Standalone earnings were recorded at PKR 24.84 per share<\/strong>, up 7% YoY and 11% QoQ<\/strong>, resulting in 1HFY25 standalone earnings of PKR 47.24 per share<\/strong>, a mild increase of 1% YoY<\/strong>.<\/p>\n\n\n\n

Key Drivers of Growth<\/h2>\n\n\n\n

Strong Sales Performance<\/strong><\/h3>\n\n\n\n
    \n
  • LUCK\u2019s standalone profitability rose 7% YoY<\/strong> in 2QFY25<\/strong>, driven by a 24% increase in total dispatches<\/strong>.<\/li>\n\n\n\n
  • Domestic dispatches increased by 2% YoY and 17% QoQ, while export dispatches surged by 86% YoY and 26% QoQ, contributing to overall revenue growth.<\/li>\n\n\n\n
  • The company\u2019s gross margins improved to 35.26%<\/strong>, supported by higher retention prices in Punjab and efficient coal procurement<\/strong>.<\/li>\n<\/ul>\n\n\n\n

    Higher Other Income & Operational Efficiency<\/strong><\/h3>\n\n\n\n
      \n
    • LUCK recorded PKR 3.5 billion in other income<\/strong>, up 32% YoY<\/strong>, further boosting profitability.<\/li>\n\n\n\n
    • Higher other income was fueled by strong dividend income<\/strong> and increased earnings from cash & short-term investments<\/strong> (PKR 39.1 billion as of 1QFY25 vs PKR 32.4 billion in 4QFY24).<\/li>\n\n\n\n
    • Operational efficiencies and better inventory management<\/strong> also played a key role in margin expansion<\/strong>.<\/li>\n<\/ul>\n\n\n\n

      Rising Demand in Foreign Markets<\/strong><\/h3>\n\n\n\n
        \n
      • Share of profit from associates grew by 16% YoY\/QoQ, driven by strong demand in Iraq and Congo.<\/li>\n\n\n\n
      • Higher international cement prices and stable EBITDA margins<\/strong> supported this growth.<\/li>\n<\/ul>\n\n\n\n

        Outlook and Future Prospects<\/strong><\/h2>\n\n\n\n

        Lucky Cement maintains a strong growth trajectory<\/strong>, backed by fundamental factors that support sustained profitability. The company has an \u2018Outperform\u2019 rating<\/strong> with a December 2025 target price of PKR 1,785 per share<\/strong>.<\/p>\n\n\n\n

        Growth Catalysts for 2025<\/strong><\/h3>\n\n\n\n
          \n
        1. Easing inflation<\/strong> could enhance demand and profitability.<\/li>\n\n\n\n
        2. Expected interest rate reversal<\/strong>, likely to improve financing conditions.<\/li>\n\n\n\n
        3. Capacity additions in renewable energy<\/strong> (domestic cement operations to benefit from cost efficiencies).<\/li>\n\n\n\n
        4. Strong demand and higher pricing power<\/strong> in both local and foreign markets.<\/li>\n\n\n\n
        5. Stable energy prices<\/strong>, reducing input cost pressures.<\/li>\n<\/ol>\n\n\n\n

          Final Thoughts<\/strong><\/h2>\n\n\n\n

          Lucky Cement\u2019s strong revenue growth, improving margins, and operational efficiencies<\/strong> have solidified its position as a leading cement manufacturer in Pakistan<\/strong>. With rising export demand and improved domestic dispatches, the company is well-positioned for continued success in FY25 and beyond<\/strong>. Investors should keep a close eye on macroeconomic trends and commodity price movements, but LUCK remains an attractive investment at current levels<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

          Lucky Cement Limited (LUCK) has reported strong financial results for 2QFY25, with earnings per share (EPS) reaching PKR 73.17, reflecting a 22% YoY and 20% QoQ growth<\/p>\n","protected":false},"author":9252,"featured_media":6838,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[10],"class_list":["post-7308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-luck"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/LUCK-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/LUCK-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/LUCK-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/LUCK-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/7308","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/9252"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=7308"}],"version-history":[{"count":0,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/7308\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6838"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=7308"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=7308"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=7308"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}