April 24, 2020 (PPI-OT)

Lucky Cement Limited - Substantially eroded domestic retention prices drag down 3QFY20 EPS to PKR 3.09, down 64%YoY

Lucky Cement Limited (LUCK) announced its financial results for 3QFY20 with unconsolidated net earnings of PKR 999mn (EPS: PKR 3.09), down by 64%YoY, as compared to a net profit of PKR 2.79bn (EPS: PKR 8.64) reported in the same period last year. This brings 9MFY20 unconsolidated net earnings to PKR 2.94bn (EPS: PKR 9.08) as against net earnings of PKR 8.29bn (EPS: PKR 25.65) reported in the comparative period.

Net sales of the Company during 3QFY20 declined by 11%YoY, despite material increase in volumetric sales, primarily due to substantially lower retention prices.

The drop in retention prices during the quarter dragged down gross profit margins of the Company to 12% as against 30% recorded in the comparative period. It is pertinent to note that cost structure of the Company is similar to that of the previous year.

Non-operating income of the Company during 3QFY20 grew by +72%YoY, possibly due to enhanced dividend income from local and foreign group companies.

Effective tax rate of the Company stood at 7% as against 13% in the similar period of the preceding year, largely driven by substantial tax credits available to the Company.

© Pakistan Press International, source Asianet-Pakistan