Karachi: Lucky Cement is set to expand its solar energy capacity by 15 megawatts at its Karachi plant, which will increase the total installed solar capacity to 89.3 megawatts. The plant also utilizes 29 megawatts of wind power, with renewable energy fulfilling approximately 55% of the company's total energy needs.
According to JS Global, the company’s management emphasized that the increased reliance on renewable energy sources not only reduces energy costs and the carbon footprint but also provides a significant competitive edge amid fluctuating energy prices. Despite this, the plant's coal consumption remains high due to outdated technology. To address this, Lucky Cement has implemented UTIS technology across its production lines to enhance efficiency and lower coal usage.
International operations continue to be a focal point for growth, with a cement capacity of 15.6 million tonnes per annum (MTPA) in Pakistan and 5 MTPA abroad, including facilities in Congo and Iraq. The facility in Congo, currently operating at high utilization, is undergoing an expansion from 1.6 MTPA to 3.2 MTPA, with construction already underway and completion expected within 18 months.
The company’s strong cash flow offers flexibility for future investments, though no new local cement investments are planned currently. Instead, Lucky Cement is considering investing up to PKR 1.2 billion in NRL for mining and exploration in Baluchistan, with projects anticipated to span 3-5 years.
In addition, Lucky Motor Corporation has partnered with GAC Group to introduce three new vehicle models, with another model rollout expected soon. Southern region exports are reportedly benefiting from reduced competition, notably from Egypt, enhancing export opportunities for the company’s southern plants.
Despite these positive developments, Lucky Cement's operating profitability has been impacted by heightened competition from Chinese imports in the soda ash and polyester markets, amid reduced anti-dumping protections. Nonetheless, JS Global maintains a “BUY” recommendation for Lucky Cement with a forecasted price-to-earnings ratio of 5.8x for the fiscal year 2027.