KARACHI: Lucky Cement Limited reported Rs3.02 billion in profit with earnings per share (EPS) of Rs9.33 for the first quarter ended September 30, down 6.8 percent over the corresponding period last year, a bourse filing said on Monday.
Lucky Cement registered a net income of Rs3.24 billion with EPS of Rs10.01 during the same quarter a year ago, a notice to Pakistan Stock Exchange said. The company also declared a cash dividend of Rs5/share upon fresh review of company’s financial situation.
Analyst Nabeel Khursheed at Topline Securities said the company announced the cash dividend of Rs5/share to comply with 40 percent payout law, which if not paid could lead to 7.5 percent tax on undistributed profits introduced by the government in Finance Act 2017.
Lucky Cement’s net sales increased six percent to Rs11.20 billion in the period under review. The revenue growth was mainly attributable to increase in sales volumes. The company’s cement sales grew 14.3 percent to 1.54 million tonnes in the quarter under review, whereas export declined 25.3 percent to 0.27 million tonnes.
On a consolidated basis, Lucky Cement reported a profit of Rs3.85 billion for the first quarter ended September 30, which was 1.8 percent higher as compared to the same period last year. Consequently, consolidated earnings per share increased to Rs11.90 as compared to Rs11.69 a year earlier.
The company’s board approved to increase its equity investments in Kia Lucky Motors and new equity investment share in wind power project of 50 megawatts by the name of Yunus Wind Power Limited.
The board also evaluated a possible equity investment in another wind power project of 50MW. “Lucky Cement remains committed towards value-creation for the society in which it operates,” the company said in a statement.
Khursheed said price competition, higher than anticipated decline in exports, unanticipated increase in gas and coal prices and delay in installation of 660MW coal power plant pose risks to the company.
Hubco’s quarterly profit falls to Rs2.55bln
Net income of Hub Power Company (Hubco) fell four percent year-on-year to Rs2.55 billion for the quarter ended September 30, translating into EPS of Rs2.06.
Hubco recorded a profit of Rs2.65 billion with EPS of Rs2.13 for the same quarter a year earlier. The power producer announced a cash dividend of Rs1.50 for the quarter.
Analyst Rai Omar at Topline Securities said dividend came in line with the management guidance, according to which Hubco would pay Rs3/share in first half, while dividends may be adjusted based on profitability and capital expenditure requirements in the second half.
The company’s sales increased to Rs27.34 billion in the July-September period from Rs23.87 billion a year ago.
Omar said the turnover growth was mainly due to higher furnace oil prices, up 26 percent YoY. Power generation of 2,197 gigawatt hours remained flat in the three months as compared to the same period a year ago, he said.
General and administration expenses jumped to Rs437.53 million in July-September from Rs350.56 million a year earlier. Lower than expected rupee devaluation, delay in commissioning of upcoming projects and circular debt pileup pose risks, Omar added.
Fauji Cement’s profit dips 27pc in July-Sept
Profit of Fauji Cement Company Limited (FCCL) dipped 27 percent to Rs444.13 million for the three months ended September 30, translating into EPS of Re0.32.
Net income of Fauji Cement Company Limited amounted to Rs608.91 million with EPS of Re0.44 during the same period a year ago.
The company didn’t announce any payout for the quarter.
Fauji Cement’s sales, however, rose 9.2 percent in the July-September period from Rs4.39 billion in the same period a year ago.
Analyst Fatima Mohsin Ali at Taurus Securities said the revenue growth was due to rise in total dispatches, which grew 15 percent YoY.
Mohsin said gross margins fell seven percentage points to 16.5 percent due to 30 percent surge in coal prices.