Pakistan’s Lucky Cement achieves 26% increase in profits

Lucky Cement has achieved profit growth of 26% in the July – September quarter, which marks the first quarter of the current financial year. Analysts commented that the performance was good, but not up to par for a market leader due to subdued cement demand, though this is typical for the time of year.

Improved sales value and lower financial charges contributed to the increase in earnings in the period, which saw revenues up 20% y/y to Rs.10.6 billion from Rs.8.85 billion in the first quarter of the previous fiscal. Higher retention prices pushed sales up and gross profit increased by 8% to Rs.4.46 billion, pushing the gross margin up by one percentage point to 45%. Operating costs fell 22% to Rs.975 million due to lower distribution costs on reduced volumes.

Edited from various sources by Katherine Gu