LUCK: Bottom line cemented by 83% YoY in 9MFY23

May 02, 2023 (MLN):  Lucky Cement Limited (PSX: LUCK) financials for 9MFY23 has demonstrated a remarkable performance, witnessing a surge of around 83% YoY to Rs48.53 billion [EPS: Rs115.24], compared to Rs26.53bn [EPS: Rs64.07] in the same period last year (SPLY).
Despite the challenges due to the economic slowdown, higher interest rates, and increased production costs across all segments, the company has been able to secure almost triple-digit growth in its profitability.
The company’s top line jumped by 32.07% YoY to stand at Rs286.04bn, compared to Rs216.58bn in SPLY, reflecting strong growth in revenue.
After deducting sales tax, excise duty, rebates, incentives, and commission, the company's gross profit rose by an impressive 63.07% YoY to Rs64.99bn in 9MFY23, attributed to the company’s constant focus on cost and operational efficiencies.
Despite experiencing a decline in both domestic as well as export sales volumes, the operational profitability of the local cement operations exhibited progress owing to increased operational efficiencies.
During the period, the company announced Line-2 operations at Pezu Plant, increasing cement production capacity by 3.15 MTPA to 15.30 MTPA.
This expansion further reinforced the company's rank as the largest manufacturer and exporter of cement and clinker in Pakistan.
The local cement production and sales statistics of the company for 9MFY23 were: Clinker Production up 30% YoY, dement production down 18.40% YoY, and cement/clinker sales down 23% YoY.
On the expense side, the distribution cost slightly decreased by 0.54% YoY, administrative expenses decreased by 18.10% YoY, whereas other expenses rose by 37.67% YoY.
Meanwhile, the finance costs of the company ballooned by 9.96x YoY to Rs21.68 million as compared to just Rs2.17m in SPLY, mainly due to higher interest rates.
However, the company's other income grew by 30.78% YoY to Rs5.66bn in 9MFY23, which helped offset the increase in expenses and contributed to overall profitability.
On the taxation front, the company paid Rs7.99bn, compared to Rs5.16m paid in the corresponding period last year.




Financial results for the nine months ended March 31, 2023 (Rupees in '000)






 


Mar-23


Mar-22


% Change




Revenue


340,069,447


265,698,737


27.99%




Less: Sales tax and excise duty


46,159,748


40,092,286


15.13%




Rebates, incentives, and commission


7,868,078


9,029,525


-12.86%




 


54,027,826


49,121,811


9.99%




Net Revenue


286,041,621


216,576,926


32.07%




Cost of sales


(221,048,484)


(176,721,610)


25.08%




Gross profit


64,993,137


39,855,316


63.07%




Distribution cost


(7,979,850)


(8,022,797)


-0.54%




Administrative expenses


(4,502,758)


(5,497,819)


-18.10%




Finance cost


(21,618,863)


(2,170,955)


895.82%




Other expenses


(3,599,753)


(2,614,762)


37.67%




Other income


5,664,564


4,331,412


30.78%




Share of profit – joint ventures and associates


5,976,909


5,817,308


2.74%




Gain on partial disposal of NutriCo Morinaga (Pvt) Limited


8,911,412


 –


–




Gain on remeasurement of interest retained in NutriCo


 


 


 




Morinaga (Pvt) Limited


8,239,260


 –


–




Profit before taxation


56,084,058


31,697,703


76.93%




Taxation


(7,992,281)


(5,165)


154634.70%




Profit after taxation from continuing operations


48,091,777


26,532,552


81.26%




Profit / (loss) after taxation from discontinued operations


444,421


 –


–




Profit after Taxation


48,536,198


26,532,552


82.93%




Earnings per share – basic and diluted


115.24


64.07


 –




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Posted on: 2023-05-02T11:55:36+05:00
The post LUCK: Bottom line cemented by 83% YoY in 9MFY23 appeared first on Mettis Global Link .