Lucky Cement records 26.55% increase in Profit for year ending 30th June 2011

1st August, Karachi Lucky Cement Limited declared a profit after tax, for the year ending 30th June 2011, of Rs. 3.97 billion which is 26.55% higher than last year’s net profit of Rs. 3.14 billion.
Lucky Cement Limited also announced a cash dividend of Rs. 4 per share, or 40% on the par value of Rs. 10 per share for the year ended on June 30th 2011. The earnings per share (EPS) for the corresponding period increased to Rs. 12.28 against an EPS of Rs. 9.7 last year.
The company’s gross profit increased by 9.18% during the year as its net sales revenue improved by 6.16% to Rs. 26.018 billion against Rs. 24.509 billion of last year. Higher local retention prices primarily contributed in the higher margins.
The local sales volume during the year under review registered a growth of 11.07% that rose to 3.46 million tons as compared to 3.12 million tons of last year. However, the export sales volume plunged by 32.9% from 3.51 million tons to 2.35 million tons during the financial year ending 30th June 2011 due to the slack construction activities and oversupply of cement in Middle East. However, the exports of bagged cement recorded 7.03% increase, which contributed in increasing the overall profitability of the company.
The financing cost of the company decreased to Rs. 518 million compared to Rs. 569.18 million in fiscal year 2010, as the company repaid its long-term loans during this year.
The Board of Directors also reviewed and approved the company’s plan to setup a joint-venture cement plant in DR Congo, Africa with an estimated joint investment of US$175million.