Karachi: Lucky Cement Ltd. (LUCK) has reported a notable increase in its financial performance for the second quarter of the fiscal year 2025, with standalone earnings reaching PKR 7.3 billion, up 7% from the same period last year. This growth exceeded expectations, driven by elevated gross margins and increased other income.

According to a statement by AKD Securities Limited, the company's consolidated profitability saw a significant rise to PKR 21.4 billion, reflecting a 22% year-on-year growth. This increase was supported by a 13% growth in revenue, which totaled PKR 34.5 billion, primarily due to substantial rises in both export and local dispatches.

While gross margins slightly contracted to 35.3% from the previous 36.0%, they still surpassed expectations, likely due to lower-than-anticipated fuel costs. Additionally, other income rose by 16% to PKR 3.5 billion, attributed to dividend income from foreign associates.

Finance costs were up by 10% to PKR 467 million, influenced by a 33% increase in total outstanding debt, despite declining KIBOR rates. On a consolidated basis, earnings per share climbed by 22% to PKR 73.2, with contributions from foreign cement operations and other subsidiaries.

AKD Securities Limited maintains a 'BUY' stance on Lucky Cement, citing improved market share, higher gross margins, and anticipated recovery in portfolio businesses. The target price for December 2025 is set at PKR 1,965 per share, indicating a potential upside of 76%.