Continuing its remarkable legacy of surpassing one milestone after another, on a consolidated basis, Lucky Cement Limited, achieved its highest ever profit after tax of Rs 48.5 billion, for the nine months period ended March 31, 2023, of which Rs 11.6 billion is attributable to non-controlling interests, a press release from the company said.
This represents an impressive 82.9% increase compared to the same period last year. The resultant earnings per share (EPS) for the period comes to Rs 115.24.
The remarkable increase in profit includes a gain on disposal made by Lucky Core Industries, a subsidiary company, of approximately 26.5% of the issued and paid-up share capital of NutriCo Morinaga (Private) Limited resulting in a gain of Rs 17.2 billion.
Moreover, following the successful completion of Lucky Cement’s first buy-back of 10.0 million shares, the company announced yet another buy-back of 23.8 million of its own shares. This buy-back plan is subject to obtaining the necessary approval from the company’s members.
The primary objective behind this strategic move is to bolster the company’s valuations. By repurchasing its own shares, it aims to optimise its capital structure and unlock additional value for its stakeholders.
This buy-back initiative showcases the company’s proactive approach to managing its financial resources, fostering investor confidence and reinforcing its commitment to maximizing long-term shareholder value. The company has announced to hold an Extraordinary General Meeting of its members on May 24, 2023.
On a consolidated basis, Lucky Cement attained a gross revenue of Rs 340.1 billion showcasing a significant 28.0% increase compared to the revenue of Rs 265.7 billion in the same period last year. The noteworthy growth in gross revenue is mainly attributable to the commencement of commercial operations of Lucky Electric Power Company Limited in March 2022.
On an unconsolidated basis, Lucky Cement reported gross revenue of Rs 91.5 billion, which signified an increase of 15.7% as compared to the same period of last year. It reported a net profit after tax of Rs 11.1 billion.
Moreover, the earning per share (EPS) for the period is calculated at Rs 34.73, compared to an earning per share of Rs 34.97 during the same period last year. This marginal decline in the company’s profitability is attributed to lower dividend income from subsidiaries during the current period.
Aligning with its growth strategy, the company had announced the commencement of operations of Line-2, at Pezu Plant on December 22, 2023. This addition increases the production capacity of its cement production by 3.15 million tons per annum, thereby, bringing the total capacity to 15.30 million tons per annum. After the successful completion of the aforesaid expansion, the company has further reinforced its rank and prominence as the largest manufacturer and exporter of cement and clinker in Pakistan.
Following the successful completion of the 34 megawatt solar power project, the company remains steadfast in its philosophy of creating value through investments in clean energy, has completed commercial negotiations for the 25 megawatts solar power project at the Karachi plant and procurement process for the necessary equipment and materials has commenced.
The management expects to complete the project in the second quarter of FY24. These investments were in line with the company’s objectives to promote renewable energy, decrease the country’s dependence on imported fuel and make it more cost-efficient.