Lucky Cement Limited announced its 2QFY23 result with a PAT of PKR11.391bn (EPS: 35.23), up by 64%QoQ, against PKR6.933bn (EPS: 21.44) in the last quarter. This takes 1HFY23 earnings to PKR18.324bn (EPS: 56.66) as compared to the PAT of PKR17.154bn (EPS: 53.05) in SPLY.
During 1HFY23 total cement industry volume dwindled by 20.7% to reach 21.8mn tons vs 27.5mn tons in SPLY on account of various challenges including flood, rising interest rates, soar in commodity prices, and cuts in overall development spending by the government. Moreover, exports lessened significantly due to the global recession.
LUCK’s overall sales volume declined by 24.1% to reach 3.6mn tons in 1HFY23 against 4.7mn tons. The company’s local sales volume accounts for 83.33% to clock in at 3mn tons down by 17.9%. The export volume for 1HFY23 was 0.6mn tons versus 1.1mn tons for 1HFY22 down by 45%.
In 2QFY23, gross margins clocked in at 22% vs. 20% in 1QFY23. The rise is mainly attributed to an improvement in retention prices. The company’s total market share for 1HFY23 accounts for around 16.5%.
Distribution expense and Administrative expense dropped by 7%QoQ and 5%QoQ respectively.
In 2QFY23, other income jumped by 12% QoQ, and other expenses plunged by 41%QoQ.
During 2QFY23, the effective tax rate for the company stood at 15% vs. 25% in the preceding quarter.
EPS improved due to 3.6mn shares buyback from the company till Dec’23. During 1HFY23, the dividend income for the company was PKR1.6bn vs PKR1.3bn during SPLY.
Courtesy – Spectrum Research