Lucky Cement net earnings rise 2%

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Lucky Cement Limited boosted its net earnings by 2% in the quarter ended on March 31, 2016, according to a notice sent to the Pakistan Stock Exchange on Monday.

The company reported an after-tax profit of Rs 4.1 billion or Rs 11.9 per share for the quarter ended March 31, down 2.65% compared to Rs 4.2 billion or Rs 12.46 per share it earned last year for the quarter under review.

Following the result, the stock depreciated by Rs 4.13 or 0.75% compared to Rs 550.22 per share of Friday to settle at Rs 546.09 per share at the close of business on Monday with 91,400 shares changing hands.

The result was in line with market expectations, according to Nabeel Khursheed of Topline Securities.

Pakistan’s largest cement exporter’s revenue increased to Rs 21 billion compared to Rs 20.5 billion during the same quarter of the previous year. The increase in net sales was attributed to revenue contribution from ICI Pakistan (ICI) – subsidiary of LUCK. ICI’s revenue was up 5% this year on the back of improved performance in its Soda Ash, Life Sciences and Chemical business, Lucky cement said in its report.

According to BMA Capital report, the growth in earnings was primarily driven by high dispatch growth in the southern region leading to an increase in local dispatches.

The company, holding 1/5th of the market share in the cement sector, also reported progress on its key projects, which include a fully integrated green field cement plant in Punjab; a 660 Megawatt (MW) super critical coal-based power project, cement plant in DR Congo, a 50 MW wind farm and a 10 MW WHR at PEZU power plant.