Lucky Cement notches 9% growth during 1HFY15

[Edevelop]

KARACHI: Lucky Cement – the top cement-maker in Pakistan – has posted a net profit of Rs5.6 billion in the first six months (July to December) of fiscal year 2015 (FY15), up 9% compared to Rs5.16 billion in the same period of last year.

Earnings per share (EPS) jumped to Rs17.32 compared to EPS of Rs15.96 in the first six months of fiscal year 2014.

The growth in earnings primarily stemmed from higher volumetric sales and other income, Global Research reported on Monday.

On a quarterly basis, earnings grew by 10% quarter-on-quarter (QoQ) to Rs2.9 billion or an EPS of Rs9.07 during 2QFY15, with the increase resulting from higher primary margins.

Revenues of the company increased by 9% year-on-year (YoY) to Rs21.41 billion during 1HFY15 because of a 6% increase in total dispatches to 3.25 million tons and a 6% increase in local cement prices to Rs520 per 50kg bag.

However, potential growth in revenues was slowed by a stronger rupee, which appreciated by 4% YoY against the dollar.

Sequentially, the company’s top-line grew by 4% QoQ to Rs10.9 billion during the second quarter of FY15 because of 2% increase in total dispatches to 1.65 million tons and an improved sales mix. Despite higher average retention prices, gross margins of the company remained stable at 43% during the first half of FY15 because of inflationary pressures such as higher gas prices.

Primary margins recovered by 2 percentage points QoQ to 44% during the second quarter of fiscal year 2015.

Corporate results: Lucky Cement notches 9% growth during 1HFY15 – The Express Tribune