Lucky Cement Q2 earnings up 22%

KARACHI: Lucky Cement (LUCK) announced its financial results for the second quarter of FY25 (Q2FY25), reporting consolidated earnings of Rs21.44 billion (EPS: Rs73.17), marking a 22 per cent year-on-year (YoY) and 20 per cent quarter-on-quarter (QoQ) increase.

The result exceeded market expectations, primarily driven by higher-than-expected gross margins and other income. As anticipated, the company did not declare any cash dividend. Gross margins stood at 29.6 per cent in Q2FY25 compared to 28.4 per cent in Q1FY25 and 30.8 per cent in Q2FY24.

The improvement on a QoQ basis was attributed to better margins from local cement operations and Lucky Core Industries (LCI). Net revenue rose by 10 per cent YoY and 1.0 per cent QoQ to Rs112.8 billion, driven by increased revenue from local cement operations and Lucky Motors.

Other income surged by 33 per cent YoY and 49 per cent QoQ due to one-off gains recorded by LCI. Distribution expenses increased by 19 per cent YoY to Rs4.7 billion due to inflationary pressures and axle load regulations. Share of profit from associates climbed 16 per cent YoY and QoQ to Rs4.9 billion.

On an unconsolidated basis, LUCK’s profitability rose by 7.0 per cent YoY and 11 per cent QoQ to Rs7.27 billion (EPS: Rs24.84). The YoY growth was attributed to higher net revenue, while the QoQ rise resulted from better gross margins. Gross margins for Q2FY25 reached 35 per cent, up from 33 per cent in Q1FY25, primarily due to higher domestic dispatches. Additionally, other income in Q2FY25 grew by 16 per cent YoY, driven by increased finance income and divi.