15^th August, Karachi : Lucky Cement Limited declared the best ever profit after tax of Rs. 6.78 billion for the year ending 30^th June 2012, which is 70.82% higher than last year’s net profit of Rs. 3.97 billion.
Lucky Cement Limited also announced a cash dividend of Rs.6.0 per share, a 60% of par value of Rs. 10 per share for the year ended on June 30^th 2012. The Earnings Per Share (EPS) of the Company jumped to Rs. 20.97 per share versus Rs. 12.28 per share achieved last year.
The company’s gross profit increased by 46.03% during the year as its net sales revenue improved by 28.08% to Rs. 33.323 billion against Rs. 26.018 billion of last year. Higher sales volume in the domestic market coupled with better retention prices attributed to the record breaking profit declared.
The local sales volume during the year under review registered a growth of 7% that rose to 3.72 million tons as compared to 3.46 million tons of last year. However, the export sales volume declined by 4% from 2.35 million tons to 2.25 million tons during the financial year ending 30^th June 2012, mainly due to the intentional focus on the domestic market, which contributed in increasing the overall profitability of the company. The financing cost of the company decreased to Rs. 253.23 million compared to Rs. 517.79 million in fiscal year 2011.
The Company undertook various capital expenditures for the enhancements of its efficiencies and cost competitiveness, which included new RDF/TDF plants and a new European origin Packing Plant for its Karachi Project. The alternative fuel (RDF/TDF) plants replaced up to 20% of Coal consumption with other cheap alternative fuels. During the year, the project of electricity supply to HESCO was also successfully completed whereby a grid station and 22 km interconnection lines were installed, resulting in supply of electricity to HESCO with effect from 1^st July, 2012.
The Company also reported progress on its Joint Venture investments for Cement Plant in DR Congo and Grinding facility in Iraq. During the year, the company also acquired approval of its shareholders for an investment of US$ 4.0 million, being 13.79% share, in the equity investment project for a 50MW wind farm being setup by the Group’s Associated Company, Yunus Energy Limited.
As a part of the Group’s strategy to diversify its business interests, Lucky Cement in consortium with other Group entities has acquired 75.81% shareholding in ICI Pakistan, consisting of four well established business segments of Soda Ash, Polyester Fiber, Life Sciences and Chemicals, which are integral to the economic fabric of Pakistan. The Share Purchase Agreement was signed in Netherlands with the Parent company of ICI Pakistan at a bid value of US$ 152.50 million, payable in equivalent of Pak Rupees. The financing of this transaction has been planned in a manner to carry minimal debt on the books of the company.