Lucky Cement reports consolidated earnings of PKR28.2bn for FY21

Pakistan-based Lucky Cement Ltd reported a consolidated profit after tax of PKR28.23bn (US$172.46m) against PKR 7.1317bn in the previous fiscal year. The company achieved a consolidated gross turnover of PKR267.73bn, which is 64 per cent higher as compared to last year’s turnover of PKR162.87bn.

The PAT of the 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 the availability of the 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 the local market on the back of an increase in construction activities. The consolidated net profit also grew due to a considerable increase in profitability of the cement operations of joint ventures outside Pakistan and the company’s other subsidiaries in Pakistan.

On a standalone basis company’s overall sales volumes posted a high double-digit growth of 30.7 per cent to reach 9.96Mt during FY20-21. The local sales volumes grew by 38.3 per cent to reach 7.56Mt in comparison to 5.46Mt during last year. Also, the export sales volumes of the company increased by 11.3 per cent to 2.41Mt as compared to 2.16Mt during last year.

Despite the impacts of the COVID-19 pandemic situation, the 1.2Mta greenfield cement production facility in Samawah, Iraq, successfully completed its trial production on 10 March 2021.

The company also reported that its 660MW supercritical coal-based power project at Port Qasim has achieved a completion status of approximately 98.7 per cent by 30 June 2021. The company is targeting is to commence commercial operation by October 2021.