LCI quarter earnings up 40pc

KARACHI: Lucky Core Industries (LCI) announced its financial results for the second quarter of fiscal year 2025 (Q2FY25) Tuesday, reporting consolidated earnings of Rs3.67 billion (EPS: Rs39.82), reflecting a 40 per cent quarter-on-quarter (QoQ) increase.

According to Topline Securities, the results exceeded expectations due to higher-than-anticipated other income and a one-time gain from the acquisition of the Pfizer portfolio. Alongside the earnings report, LCI declared an interim cash dividend of Rs34 per share, surpassing market forecasts. Other income for the quarter surged by 62 per cent year-on-year (YoY) and 76 per cent QoQ to approximately Rs1.46 billion, driven by scrap sales and higher income from financial assets. The company recorded a gain on bargain purchase of Rs172 million related to the Pfizer portfolio acquisition.

LCI’s earnings grew by 47 per cent YoY, supported by improved gross margins and higher other income. Gross margins reached 24 percent in Q2FY25 compared to 22 per cent in Q1FY25 and 21 per cent in Q2FY24, largely due to better performance in the pharma and polyester segments.

Distribution expenses declined by 10 per cent YoY and 17 per cent QoQ to Rs1.67 billion, attributed to lower freight costs amid reduced exports. Finance costs dropped to Rs672 million, marking a 25 per cent YoY decrease due to lower interest rates. The company’s effective tax rate stood at 37 per cent in Q2FY25, compared to 38 per cent in Q1FY25 and 35 per cent in Q2FY24.