Lucky Cement is set to unveil its 1QFY22 financial result tomorrow

Lucky Cement Limited (LUCK) is set to unveil its 1QFY22 financial result tomorrow, whereby the company is expected to post unconsolidated earnings of PKR 3,000mn (EPS: PKR 9.28) against PKR 2,226mn (EPS: PKR 6.89) last year and PKR 2,383mn (EPS: PKR 7.37) in 4QFY21.

The 35% YoY surge in profitability was owed to a 16% jump in company topline amid significant hike in retention prices in north and south tagged with 3% uptick in domestic offtake. Albeit, with cost pressure emanating from higher coal prices, electricity tariff and packaging costs, coupled with volumetric decline (-7% YoY) margins are projected to come down to 25.3% vis-à-vis 27.9% last year. However, a 2x growth in other income, on the back of recognition of dividend income from ICI (PKR 20.00/share), should support bottom-line.

On a QoQ basis, margins are forecast to come down (4QFY21: 26.8%) due PKR depreciation and higher coal prices, which should offset the impact of cement price hikes.

Courtesy – AHL Research

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