Karachi August 9 2021: Lucky cement achieved a gross turnover of PKR 267.73 billion which is 64 percent higher as compared to last year’s turnover of PKR 162.87 billion.
Moreover, company’s Net Profit of the Company was PKR 28.23 billion of which PKR 22.86 billion is attributable to the owners of holding company which translates into an EPS of PKR 70.69 during the fiscal year ended June 30, 2021 as compared to PKR 18.96 during last year.
During the fiscal year 2020-21 under review, Company’s overall Net Profit increased by 2.86 times as compared to last year.
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The increase in Net Profit was attributable to increase in profitability of all the group companies. The PAT of Cement segment (Holding Company) grew by 3.21 times during the year under review due to improved margins and sales volumes. The increase in sales volumes was attributable to availability of newly commissioned increased capacity of Line 1 for the full year versus six months during the corresponding period and the growth of cement demand in local market on the back of increase in construction activities. The increase in profitability was also due to better absorption of fixed costs and operational efficiencies. The consolidated Net Profit also grew due to considerable increase in profitability of cement operations of Joint Ventures outside Pakistan and Company’s other subsidiaries in Pakistan.
Cement Industry and Company’s Performance
Cement industry in Pakistan grew by 20.1 percent to 57.45 million tons during the year ended 30 June 2021 in comparison to 47.81 million tons during the same period last year. The local sales volume registered a healthy growth of 20.4 percent to reach 48.13 million tons during the year under review versus 39.97 million tons during last year. Export sales volumes also registered an increase of 18.7 percent to reach 9.31 million tons during the year compared to 7.85 million tons during last year.
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The contributing factors for such a phenomenal growth in sales volume are mainly the pent-up demand of last year due to Covid-19 lock downs, construction package announced by the Government to support construction sector, low cost housing scehmes, lower interest rates to boost economic recovery, focus on reallocation of liquidity available with local banks towards construction and housing sector and Government’s focus on constructing dams and water reserviors.
In comparison to the Cement Industry, Lucky Cement overall sales volumes posted a high double digit growth of 30.7 percent to reach 9.96 million tons during the year ended 30 June 2021. The local sales volumes grew by 38.3 percent to reach 7.56 million tons in comparison to 5.46 million tons during last year. Also, the export sales volumes of the Company increased by 11.3 percent to 2.41 million tons as compared to 2.16 million tons during last year.
The growth in Company’s local sales volume during the period under review is mainly due to upsurge in demand because of reasons explained above and the timely enhancement of operational capacity at our North plant which came online in December 2019. Moreover, higher export sales volume is mainly attributed to export of loose cement owing to strategic identification of new markets and product placement, keeping in view better margins and our unique position to make such sales. Lucky Cement is the only company in Pakistan to have a state of the art mechanised facility at the port to export loose cement.
