Lucky Cement announces 3.15 million tonne capacity increase. The company posted a profit of Rupees 12.44 billion for the half year ended December 31, 2020
In view of the growing demand for cement in the country, Lucky Cement has announced to increase the production capacity of cement in its piezo plant by 3.15 million tons per annum. Work is expected to begin in the current financial year and the project will be completed within one and a half to two years. The expansion project will increase the company’s production capacity to 15.3 million tonnes per annum.
Lucky Cement has declared a gross profit after tax of Rs. 12.44 billion for the half year ended December 31, 2020, out of which Rs. 2.08 billion belongs to minority shareholders (non-controlling interest). The company’s earnings per share stood at Rs 32.05 as compared to Rs 9.93 in the same period last year. Overall, the company’s turnover increased by 56 per cent to Rs 123.72 billion from Rs 79.56 billion in the same period last year.
During the period under review, the company’s gross net profit (attributed to the owners of the holding company) increased by 223% over the same period last year. The main reason for the increase in net profit was the 134% increase in the profit of the holding company, which was made possible by the increase in the efficiency of the new production line in the north and the reduction in costs. Lucky Motor Corporation’s net profit also supported the holding company’s net profit growth due to growth in automobile sales.
In addition, LCL Investment Holding Limited performed better than the same period last year. Both Congo and Iraq projects performed better due to lower production costs, stable prices and increased sales volumes. On an individual basis, Lucky Cement’s total sales volume increased by 35.9% to 4.99 million tonnes. The company’s domestic sales in the first six months of the current financial year stood at 3.66 million tonnes, up 41.2 per cent from 2.59 million tonnes in the same period last fiscal.
In addition, the company’s export sales volume reached 1.34 million tonnes this year, an increase of 23.3% over 1.08 million tonnes in the same period last year. During the period under review, the company’s domestic sales volume increased due to increased demand for cement and operational capacity of the piezo plant due to increased economic activity in the country.
In addition, the company’s export volume also increased due to increased demand for open cement. In terms of individual performance, Lucky Cement’s total sales revenue stood at Rs 42.11 billion, an increase of 35.4 per cent over Rs 31.10 billion in the corresponding period of the previous financial year. The increase in production volume and efficiency from the company’s new production line in the North resulted in a reduction in cost per ton.
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Lucky Cement’s net profit after Aztex stood at Rs 4.54 billion. Similarly, on an individual basis, the company’s earnings per share stood at Rs 14.04 per share as compared to Rs 5.99 per share during the same period of the previous financial year. Lucky Cement’s 1.2 million tonne cement plant in Samawah, Iraq has started production on a trial basis from the third week of January and is expected to start commercial production from February 2021.
The company reported that the supercritical 1 X 660 MW coal-fired power plant at Port Qasim is also 95 percent complete by the end of this quarter. In addition, the company is in touch with CPPA, NTDC and PIB to make available the interconnection facility required for the project to be operational and it is hoped that the project will be commercialized by the middle of the first quarter of the next financial year. Will start operations.
Lucky Cement is committed to the development and improvement of the quality of life of the people and communities in the area of its operations. In this regard, Leximent is also providing services in the fields of education, women’s empowerment and health under corporate social responsibility. A report released by the company said that the outlook for the cement industry is likely to remain positive due to the increase in current economic activity.
Demand for cement has increased in both the northern and southern areas as compared to last year, as a result of which cement prices are likely to remain stable, especially in the north, while export sales are also likely to remain stable. In addition, the company expects that the package announced by the federal government for the construction industry and other important measures will have a positive impact on the demand for cement.