Lucky Cement Reports a Massive 217 percent Increase in Profits - Android

Lucky Cement Limited has announced its financial results for the half-year that ended on 31 December 2020. The company reported… Read More

The post Lucky Cement Reports a Massive 217% Increase in Profits appeared first on .

Lucky Cement Limited has announced its financial results for the half-year that ended on 31 December 2020.

The company reported a consolidated net profit after a tax of Rs. 12.44 billion during the half-year, which is 217.35 percent or 2.17 times higher than the amount of Rs. 3.92 billion recorded in the same period last year.

On an unconsolidated basis, Lucky Cement Limited reported a net profit after a tax of Rs. 4.54 billion, which increased by 135.23 percent as compared to Rs. 1.93 billion.

During the period under review, on a consolidated basis, the net sales of the company increased by 58 percent to Rs. 95.81 billion as compared to Rs. 60.73 billion.

The increase in net profits is mainly attributable to the increase in the net profit of the cement segment which had grown by 134 percent due to a higher turnover supported by the absorption of the fixed costs and efficiencies from the new production line in the north.

ALSO READ

Fauji Fertilizer Reports Rs. 20.81 Billion Profit in 2020

This increase in the net profit of the holding company was also supported by a significant increase in the net profits of the Lucky Motors Corporation (formerly KIA Lucky Motors) due to its strong growth in automobile sales.

LCL Investment Holdings Limited also delivered a healthy performance as compared to the same period last year owing to growth in its sales volume coupled with an improved retention price and a decrease in the input costs from the Congo and Iraq projects.

During the first half of the year, cement sales had improved by 36 percent to five million tons year-on-year.

The gross profits had increased to Rs. 20.21 billion, and had risen by 109.65 percent as compared to Rs. 9.64 billion in the same period last year. The finance cost had decreased by 35.51 percent to Rs. 761 million from Rs. 1.18 billion.

The earnings per share of the company had increased to Rs. 32.05 from Rs. 9.93.

Quarter Results

The company reported a consolidated net profit after a tax of Rs. 7.31 billion during the quarter, which is 205.86 percent or 2.05 times higher as compared to Rs. 2.39 billion recorded in the same period last year.

On an unconsolidated basis, Lucky Cement Limited had reported a net profit after a tax of Rs. 2.31 billion, which rose by 135.71 percent as compared to Rs. 980 million.

According to the Topline Securities report, Lucky Motors Corporation (formerly KIA Lucky Motors) had posted estimated gross margins of 15.6 percent during the second quarter of the FY21, up by 350 bps quarter-on-quarter, with expected profitability of Rs. 2.3-2.4 billion (almost twice that of the last quarter).

Lucky’s scrip at the bourse was closed at Rs. 727.29, down by Rs. 0.64 or 0.09 percent, with a turnover of 1.75 million shares on Friday.

The post Lucky Cement Reports a Massive 217% Increase in Profits appeared first on .