Karachi, August 09, 2021 (PPI-OT): Lucky Cement Limited – Earning of PKR 7.37/share reported in 4QFY21

Lucky Cement Limited announced its financial result for 4QFY21 wherein, it reported an unconsolidated profit of PKR 2,383mn (EPS: PKR 7.37), as against net profitability of PKR 409mn (EPS: PKR 1.26) in 4QFY20. However, on sequential basis earnings plummeted by 67%q/q due to rising coal prices and 10%q/q lower dispatches. This takes FY21 earnings to PKR 14,070mn (EPS: PKR 43.51), up by 4.21xy/y. In conjunction with the result the company did not announce any cash dividend.

Net Sales of the Company during 4QFY21, as against 4QFY20 increased by massive 68%y/y However, on sequential basis it declined by 7%q/q due to 10%q/q decline in dispatches. The y/y rise in net sales is due to notable turnaround in retention prices and 28%y/y rise in dispatches. Likewise, during FY21 revenue portrayed an increase of 50% due to aforesaid reason.

Gross margins of the company jacked up to 27% y/y as against 16% registered in last year. This was largely driven by better absorption of fixed cost amid higher volumetric sales. Similarly, FY21 gross margins clocked in at 30% as opposed to 15% registered in last year due to reduced cost structure. The COGS per bag during FY21 declined by 6% to 220.4/bag as compared to 234.71/bag in last year.

Other income underwent a significant jump of 3.37x during 4QFY21 amid improved cash balance. However, on sequential basis it declined by massive 85%q/q due to absence of dividend income from its subsidiary.