Lucky Cement Limited (LUCK) is scheduled to announce its 4QFY22 financial result on Aug 5th, 2022 whereby we expect the company to post a profit after tax (PAT) of PKR 3,273mn (EPS: PKR 10.12) compared to PKR 2,383mn (EPS: PKR 7.37) during same period last year, depicting a jump of 37% YoY. Without super tax, earnings for the quarter would arrive at PKR 5,350mn (EPS: PKR 16.54).
Sales are expected to grow by a stunning 40% YoY to PKR 22bn during 4QFY22, owed to a noteworthy escalation in retention prices, which offset the impact of a 16% volumetric decline to 1,977k tons. This will translate to improved margins of 30.7% against 26.8% last year, offsetting the impact of higher coal prices, PKR depreciation and augmented energy tariff.
A similar trend was witnessed on a QoQ basis (3QFY22: 22.1%). This will take the bottom-line for FY22 to PKR 14,582mn (EPS: PKR 45.09) vis-à-vis PKR 14,070mn (EPS: PKR 43.51) in FY21. During the year, sales are expected to rise by 29% YoY on the back of jump in retention prices which eroded the impact of a 9% decline in offtake to 9,089k tons. Albeit, margins came down to 25.6% vs. 30.1% in SPLY attributable to higher coal prices, PKR depreciation and augmented energy tariff. A 38% jump in other income to PKR 8,059mn will also support bottom-line, aided by a one-off impact of PKR 1.48bn as fee to LUCK’s JV in DR Congo, for technical services.
Courtesy- AHL Research