Lucky Cement Limited’s profit fell 23 percent to Rs12.346 billion for the year ended June 30, 2019, translating into earnings per share (EPS) of Rs35.03, a bourse filing said on Monday. Lucky Cement earned Rs16.173 billion with EPS of Rs45.83 in the previous financial year. The company announced cash dividend for the year ended June 30, 2019 at 65 percent.
Analyst Karim Punjani Topline Securities said price weakening, lower than anticipated local demand, unanticipated increase in gas and coal prices, and delay in its upcoming ventures are the key risks to the company. Lucky Cement believed that the outlook of the cement industry would continue to remain challenging for the domestic sales in short to medium-term. “Export sales are anticipated to remain stable. However, prices will come under pressure due to regional competition,” the company said in a statement.
“In the long-term, cement industry’s outlook is promising on account of government’s key initiatives to build both small and mega-capacity / multipurpose water reservoirs / dams and construction of low-cost affordable houses for public at large.” Gross sales revenue increased 0.3 percent to Rs67.55 billion. “The increase in revenue was mainly due to higher export volumes for clinker.”
The company’s overall sales volumes declined 1.8 percent to reach 7.67 million tons during the financial year. The local cement sales volume registered a decline of 11.7 percent to come to 5.85 million tons in comparison to 6.63 million tons last year and the export sales volumes of the company improved by 60.9 percent to reach 1.82 million tons as compared to 1.13 million tons a year earlier.
Lucky Cement recorded net profit after tax of Rs10.49 billion, 14 percent lower over the previous financial year. On a consolidated basis, Lucky Cement reported net profit after tax of Rs11.33 billion after taking out Rs1.02 billion attributable to non-controlling interests for the financial year ended June 30. Further, on a consolidated basis, the company achieved gross turnover of Rs136.59 billion, 9.6 percent higher as compared to last year’s turnover of Rs124.68 billion.
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