AHCML Research has indicated that Lucky Cement Limited is poised to announce impressive financial results for the second quarter of FY26. The company is anticipated to report a profit after tax (PAT) of PKR 8,624 million, translating to earnings per share (EPS) of PKR 5.9. This marks an 18.5% increase year-over-year, with consolidated EPS expected to reach PKR 15.68.
Key highlights from the analysis include:
– **Sales Revenue**: The projected sales revenue for the quarter is PKR 34,901 million, showing a modest 1% increase year-over-year, primarily driven by higher local dispatches.
– **Gross Margins**: Lucky Cement’s gross margins are estimated at 38.45%, reflecting an improvement of 3.45 percentage points compared to the previous year, attributed to lower fuel and coal prices.
– **Energy Self-Reliance**: The company’s commitment to sustainability is evident with the addition of a 20.7 MW Battery Energy Storage System (BESS), boosting its renewable energy mix to nearly 50% through a combination of wind and solar energy.
– **Cost Management**: The weighted average electricity cost for the company is expected to be between PKR 32.5 and 33.5 per kWh, while average coal prices have decreased to USD 85.60 per ton, down from USD 110.44 per ton a year ago.
– **Finance Costs**: Following a significant reduction in the average discount rate to approximately 11% from 15% last year, finance costs are projected to decrease by around 43% year-over-year.
– **Local Dispatches**: Local dispatches reached 1,742,384 tons in 2QFY26, which is a 9.05% increase compared to 1,597,668 tons in 2QFY25. On a quarter-over-quarter basis, dispatches increased by 8.17%.
– **Export Performance**: In contrast, export dispatches have faced challenges, falling by 30.88% year-over-year to 710,402 tons and seeing a quarterly decline of 12.20%.
Overall, Lucky Cement’s anticipated results indicate strong performance in the local market and a growing commitment to renewable energy, despite challenges in export sales. As the company prepares to release its financial results, stakeholders are closely monitoring these developments.
