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Lucky Cement distributes flood aid

Lucky Cement has distributed ration bags, tents and first aid kits to victims of flooding Dadu, Khairpur, Sanghar and Uthal.

The Balochistan Times newspaper has reported that the company said “The immense destruction of houses and damages to crops caused by the floods, made victims homeless and they are now in the state of starvation.” It continued “In this time of crisis, Lucky Cement, Pakistan’s largest cement manufacturer, has reached out to far-flung areas which were worst affected by the flash floods in North and South of Pakistan to provide relief to the victims

Lucky Cement gets Corporate Excellence Award

KARACHI: Lucky Cement Limited won the Management Association of Pakistan’s Corporate Excellence Award in the cement sector category, a statement said.

Noman Hasan, executive director of the Lucky Cement received the award at the 36th MAP Annual Corporate Excellence Award ceremony.

The Corporate Excellence Awards was instituted by MAP in 1982 with the sole aim to recognise and honour companies, showing outstanding performance and demonstrating progress and enlightened management practices.

Hasan said: “We are pleased to accept this recognition and would like to thank all our internal and external stakeholders for their confidence and continuous support throughout the years.”

He also said: “Our dynamic human capital and efficient corporate governance framework aligned to our vision of ensuring a sustainable leadership position in Pakistan has helped us achieve remarkable results in every domain of our business. Being an industry leader, we are determined to continue setting new benchmarks and create an environment of growth and opportunities.”

Lucky Cement received the award based on having the best corporate practices and governance in the cement sector.

The primary criteria for this award emanates from best corporate and management practices reflected by the leadership, corporate governance, customer and market focus, HR, strategic planning and communication, social responsibility, risk management, IT infrastructure, service delivery and security.

Pakistan is entering a new cement capacity expansion phase

In a cement conference, conducted by AKD Securities Ltd CEO, Muhammad Farid Alam, on 15 September 2021, Pakistan’s cement industry producers confirmed that the country has entered another expansion phase. The total installed capacity of the cement industry in Pakistan is currently at 69Mta, and a further 18Mta of capacity is in the pipeline. This will take total production capacity to 87Mta by FY24.

Atif Kaludi, CFO of Lucky Cement Ltd, Muhammad Rehan, CFO at Attock Cement Pakistan Ltd, Shamail Javed, CFO at Gharibwal Cement Ltd, and Inayatullah Niazi, CFO at DG Khan Cement Ltd verified that the next expansion phase was imminent.

In FY21 Pakistan’s cement sales grew by 20 per cent YoY to 57.4Mt. For FY22 experts expect demand to grow by 10 per cent YoY. They estimated that if demand continues to increase by 10 per cent each year, the industry will reach 100 per cent capacity utilisation by FY26.

Lucky Cement

Lucky will incur capex of PKR23bn (US$136.99m) for its upcoming cement expansion, of which approximately 50 per cent is funded through Temporary Economic Relief Financing (TERF) and Long Term Financing Facility (LTFF) facilities. The development is expected to commence operations by December 2022, Atif Kaludi added.

Attock Cement

Cement expansion of 4250tpd is expected to come online by January 2024. Similarly, a solar plant of 20MW is expected to go online by October 2021, said Muhammad Rehan.

Garibwal Cement

According to Shamail Javed, GWLC’s announced expansion is subject to board approval. If the board approves, it will take two years to start commercial production.

DG Khan Cement

The company is expected to start construction of a project from next year. The 10,000-14,000tpd is expected to come online by FY25. The total cost of the project is expected to be US$250m and will be financed through a combination of debt and equity, said Inayatullah Niazi.

Pakistan cement production rises 27% in 12MFY21

International news agency CEMNET reported, The overall output of the Large-Scale Manufacturing Industries Index (LSMI) in Pakistan increased by 14.9 per cent for July 2020-June 2021 compared to July 2019-June 2020, including local cement production, FBS estimated. Industry attributes the increase in production on the back of a boost in local demand by housing schemes.

During the last fiscal year of July 2020-June 2021, Pakistan’s cement production increased by 27.3 per cent, YoY to 49.803Mt compared to 39.121Mt in the preceding fiscal year. The upward trend in cement output was also noted in June 2021 alone, when it rose by 32.4 per cent to 4.666Mt versus 3.523Mt in the same month last year.

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.

Lucky Cement Earn profit of Rs.28.20 Billion

Lucky Cement posted a profit-after-tax of Rs28.23 billion during the period ended June 30, 2021, a bourse filing said.

On a consolidated basis, the Lucky Cement’s profit of Rs28.23 billion included Rs5.37 billion of the non-controlling interest for the year ended June 30, 2021.

Further, on a consolidated basis, the company achieved gross turnover of Rs267.73 billion, which is 64 per cent higher, compared with the last year’s turnover of Rs162.87 billion.

During the period under review, the company’s consolidated net profit (attributable to owners of the holding company) increased 273 per cent, compared with the last year.

The increase in the net profit was attributable to an increase in the profitability of all the group companies. The profit-after-tax of the cement segment (holding company) grew 3.21 times during the year under review due to the improved margins and sales volumes.

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