Topline Pakistan Research has published a report on Lucky Core Industries (LCI) regarding its recent financial results. The company reported an earnings per share (EPS) of Rs6.25 for the quarter, with earnings recorded at Rs25.5, which aligns with expectations. LCI announced its 4QFY24 results today, showing consolidated earnings of Rs2.8 billion with an EPS of Rs6.17, marking a 9% increase quarter-over-quarter (QoQ).

Key points from the report include:

– The financial results met our expectations.

– Lucky Core Industries executed a 5-for-1 stock split, increasing its total outstanding shares from 92 million to 462 million.

– Alongside the financial results, the company declared a second interim cash dividend of Rs6.20 per share for [most recent quarter], bringing the total dividend for FY25 to Rs13.00 per share.

– LCI’s earnings grew by 9% QoQ, driven by improved gross margins, higher other income, and a reduction in finance costs.

– The quarterly growth was attributed to better margins in the pharma segment and increased sales prices due to the deregulation of non-essential medicines.

– The company recorded gross margins of 23.2% in [most recent quarter], compared to 22% in [previous quarter] and 24% in [earlier quarter].

– Other income increased by 39% QoQ but decreased by 21% year-over-year (YoY). The YoY decline is due to the service fee charged by the company to its subsidiary, Lucky Core Power Generation, in [earlier quarter].

– The operating profit for the company stood at Rs4.4 billion, down 16% YoY but up 4% from the previous quarter.

– For FY25, net sales decreased slightly by 1% YoY to Rs119 billion.

– The company announced a dividend of Rs6.20 per share for [most recent quarter], in line with expectations, bringing the total FY25 payout to Rs13 per share.

– Gross margins for FY25 were recorded at 22.8%, compared to 22.4% in FY24.

– We maintain our HOLD stance on LCI, with the stock currently trading at a FY26E price-to-earnings (PE) ratio of 13.2x.