Lucky Cement records 20% increase in 1H14 profit

Pakistani cement manufacturer Lucky Cement has released its financial results for the first half of the current fiscal year (ended 31 December 2013).

1H14 results

• Net profit totalled Rs.5.16 billion in 1H14, a 20.3% y/y increase compared to Rs.4.29 billion in 1H13.
• Net sales revenue rose by 11.8% y/y to Rs19.57 billion, against Rs.17.51 billion in 1H13, resulting in a 10.7% y/y increase in gross profit. A 9.6% y/y increase in volume and 2.2% y/y increase in net retention contributed to the rise in sales revenue.
• Local sales volume registered a growth of 4.3% y/y, rising to 1. 9 million t, compared to 1.8 million t in 1H13.
• Export sales volume increased by 19.1% y/y to 1.2 million t, from 1 million t in 1H13.
• Earnings per share (EPS) increased to Rs.15.96 in 1H14, from Rs.13.27 in 1H13.

The increase in the company’s revenue was attributed to factors such as an increase in the domestic price of cement and the depreciation of the rupee, which pushed up exports.

Ongoing projects

• In a bid to increase efficiency, improve product quality and reduce energy costs, a tyre derived fuel (TDF) plant is being constructed at Lucky Cement’s Pezu facility and new vertical grinding mills are being installed at its Karachi plant.
• The company has commissioned a new waste heat recovery (WHR) plant, which will be located at its power generation units.
• Lucky Cement’s joint venture investment in a grinding mill in Iraq has been commissioned. The mill is due to produce its first batch of commercial cement in February 2014.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/27022014/lucky_cement_records_20_increase_in_1h14_profit_819/