Lucky Cement Reports a Massive 236% Increase in Net Profit For Q1 FY21

Lucky Cement Limited has announced its financial results for the first quarter of FY21.

It has reported a consolidated net profit after tax of Rs. 5.13 billion during the quarter, which is 236% or 2.36x times higher as compared to Rs. 1.52 billion recorded in the same period last year.

On an unconsolidated basis, Lucky Cement Limited reported a net profit after tax of Rs. 2.22 billion, up by 132.50% as compared to Rs. 955 million.

During the fiscal year on a consolidated basis, net sales of the company were up by 66% to Rs. 45.11 billion as compared to Rs. 27.18 billion.

The increase in net profits was mainly attributable to the increase in net profit of the cement segment, which increased by 132% due to the absorption of fixed costs and lower input costs. This increase in net profit of the holding company was also supported by a significant increase in net profits of Lucky Motor Corporation and LCL Investment Holdings as compared to the same period last year.

According to a report by Topline Securities, the increase in profits was due to higher than expected gross margins in the cement business and in the auto business. The report stated that the net sales from the auto business clocked in at Rs. 16 billion, up 77% from the previous quarter. This amount was calculated by deducting cement and ICI financials from the consolidated business.

Lucky’s overall cement sales volume improved by 48.6% to 2.43 million tons during the current first quarter as compared to the previous year. The local cement sales registered an increase of 48.8% in the sales volume to 1.67 million tons as compared to 1.12 million tons. The export sales also saw an increase of 49.5% during the quarter.

Other income of the company increased to Rs. 1.50 billion from Rs. 1.38 billion. The finance cost decreased to Rs 425.61 million from Rs. 625 million, decreasing by 32%.

Basic and diluted earnings per share increased to Rs. 13.45 from Rs. 3.93. However, the company did not announce any dividend in the quarter.

At the time of filing this report, LUCKY’s shares at the bourse are trading at Rs. 695, up by Rs. 34.06 or 5.15%, with a turnover of 1.65 million shares on Monday.

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