Become a Member

Track your favourite stocks
Create & monitor portfolios
Daily portfolio value

Company	Chg	Chg %
Quickpicks
£	%
Add shares to your quickpicks to display them here!

3rd Quarter Results-Financial Results-2018

27th Apr 2018 11:32

RNS Number : 4005M

Lucky Cement Limited

27 April 2018

LCL/ANNO/2017-18/ April 26, 2018

The General Manager

Pakistan Stock Exchange

Limited

Karachi

The Deputy Chief

Securities & Exchange

Commission of Pakistan

Islamabad

The London Stock Exchange

10 Paternoster

Square,

London

Dear Sir(s)

FINANCIAL RESULTS FOR THE 3RD QUARTER ENDED MARCH 31, 2018

This is to inform you that the Board of Directors of our Company in their Meeting held on Thursday, April 26, 2018 at 11:30 a.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following:

(I) Cash Dividend Nil

(ii) Bonus Issue Nil

(iii) Right Issue Nil

(iv) Interim Dividend Nil

The financial results of the Company consisting of Balance Sheet, Profit and Loss Account and Directors' Report are annexed.

We will be sending you the requisite copies of printed financial statements in due course of time.

Yours truly

for LUCKY CEMENT LIMITED

IRFAN CHAWALA

Director Finance / CFO

Unconsolidated Condensed Interim Balance Sheet
As at March 31, 2018
		March 31,	June 30,
		2018	2017
		(Un-audited)	(Audited)
		(PKR in '000')
ASSETS
NON-CURRENT ASSETS
	Fixed assets
	Property, plant and equipment	40,847,447	37,488,137
	Intangible assets	50,001	79,657
		40,897,448	37,567,794

	Long-term investments	14,876,094	13,313,520
	Long-term loans and advances	88,416	84,951
	Long-term deposits	3,175	3,175
		55,865,133	50,969,440
CURRENT ASSETS
	Stores and spares	7,951,804	5,894,079
	Stock-in-trade	1,891,056	2,509,273
	Trade debts	2,310,911	1,582,689
	Loans and advances	506,162	619,161
	Trade deposits and short term prepayments	96,273	39,774
	Accrued return	161,649	165,289
	Other receivables	1,772,234	1,235,019
	Tax refunds due from the Government	538,812	538,812
	Short term investment	45,859	45,452
	Cash and bank balances	34,925,319	33,738,377
		50,200,079	46,367,925

TOTAL ASSETS		106,065,212	97,337,365

EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES

Issued, subscribed and paid-up capital		3,233,750	3,233,750
Reserves		80,855,888	76,551,231
		84,089,638	79,784,981

NON-CURRENT LIABILITIES

	Long-term deposits	88,740	84,630
	Deferred liabilities	7,273,080	7,124,127
		7,361,820	7,208,757
CURRENT LIABILITIES
	Trade and other payables	13,350,159	9,269,882
	Taxation - net	1,263,595	1,073,745
		14,613,754	10,343,627

		21,975,574	17,552,384

TOTAL EQUITY AND LIABILITIES		106,065,212	97,337,365

Unconsolidated Condensed Interim Profit and Loss Account
For the 3rd quarter and nine months ended March 31, 2018 (Un-audited)

		Nine Months Ended				Quarter Ended
		March 31,		March 31,		March 31,		March 31,
		2018		2017		2018		2017
		(PKR in '000')				(PKR in '000')

Gross sales		50,626,090	47,291,416		17,774,013		16,048,908

Less:	Sales tax and federal excise duty	14,240,681	11,523,809		5,090,856		4,063,627
	Rebates and commission	714,820	526,476		266,396		185,824
		14,955,501		12,050,285		5,357,252		4,249,451

Net sales		35,670,589		35,241,131		12,416,761		11,799,457

Cost of sales		(22,578,034)	(18,289,927)		(8,209,947)		(6,514,414)

Gross profit		13,092,555	16,951,204		4,206,814		5,285,043

Distribution cost		(1,348,647)	(1,399,721)		(535,464)		(361,763)
Administrative expenses		(813,960)	(767,791)		(257,457)		(253,736)
Other expenses		(985,349)	(1,575,331)		(368,600)		(418,762)
Other income		2,034,900	1,460,442		839,562		511,585

Profit before taxation		11,979,499	14,668,803		3,884,855		4,762,367

Taxation
	- current	(2,170,216)	(3,770,955)		(683,533)		(997,381)
	- deferred	(7,597)	(476,008)		53,231		(380,562)
		(2,177,813)		(4,246,963)		(630,302)		(1,377,943)

Profit after taxation		9,801,686	10,421,840		3,254,553		3,384,424

Other comprehensive income:

Other comprehensive income which may be reclassified to

profit and loss account in subsequent periods

Unrealized gain on re-measurement of available for sale investment	407			-		6,212		-
Deferred tax thereon	(61)			-		(932)		-
	346				-		5,280		-


Total comprehensive income for the period		9,802,032		10,421,840		3,259,833				3,384,424

			(Rupees)				(Rupees)

Earnings per share - basic and diluted		30.31		32.23		10.06				10.47


Condensed Interim Consolidated Balance Sheet
As at March 31, 2018

			March 31,		June 30,
			2018		2017
			(Un-audited)		(Audited)
			(PKR in '000')
ASSETS
NON-CURRENT ASSETS
	Fixed assets
	Property, plant and equipment	66,940,305		59,601,233
	Intangible assets	8,015,740		7,388,387
			74,956,045		66,989,620

	Long-term investments	13,016,970		11,098,870
	Long-term loans and advances	529,589		467,373
	Long-term deposits and prepayments	67,154		44,972
			88,569,758		78,600,835
CURRENT ASSETS
	Stores, spares and consumables	9,065,451		7,041,171
	Stock-in-trade	8,973,424		8,423,173
	Trade debts	4,957,854		4,172,567
	Loans and advances	1,616,757		1,061,146
	Trade deposits and short-term prepayments	779,730		675,814
	Other receivables	3,498,423		2,881,844
	Tax refunds due from the Government	538,812		538,812
	Taxation - receivable	1,742,792		1,093,972
	Accrued return	174,073		181,355
	Short term investments	45,859		45,452
	Cash and bank balances	39,249,313		36,273,319
			70,642,488		62,388,625

TOTAL ASSETS		159,212,246		140,989,460

EQUITY AND LIABILITIES
SHARE CAPITAL AND RESERVES


Issued, subscribed and paid-up-capital		3,233,750		3,233,750
Reserves			90,880,714		83,736,475

	Attributable to the owners of the Holding Company	94,114,464		86,970,225
	Non-controlling interests	11,978,991		9,235,325
Total equity		106,093,455		96,205,550

NON-CURRENT LIABILITIES
	Long-term finances	10,373,088		8,825,140
	Long-term deposits	88,740		84,630
	Liabilities against assets subject to finance lease	37		798
	Deferred liabilities	10,134,557		9,864,932
	Other long term liabilities	3,365,948		2,752,510
			23,962,370		21,528,010
CURRENT LIABILITIES
	Trade and other payables	21,800,381		19,225,920
	Provision for taxation	1,312,185		1,073,745
	Accrued return	171,408		177,654
	Short-term borrowings and running finance Current portion of liabilities against assets	4,573,168		2,128,905
	Subject to finance lease	1,179		2,009
	Current portion of long-term finance	1,298,100		647,667
			29,156,421		23,255,900


TOTAL EQUITY AND LIABILITIES		159,212,246		140,989,460


Condensed Interim Consolidated Profit and Loss Account
For the 3rd quarter and nine months ended March 31, 2018 (Un-audited)

			Nine Months Ended				Quarter Ended
			March 31,		March 31,		March 31,		March 31,
			2018		2017		2018		2017
			(PKR in '000')				(PKR in '000')

Turnover			92,601,630		82,425,546		32,835,542		28,548,300

Less:	Sales tax and excise duty	16,469,999		13,525,363		5,915,584		4,760,378
	Rebates and commission	3,784,476		3,234,518		1,327,170		1,178,691
			20,254,475		16,759,881		7,242,754		5,939,069

Net sales			72,347,155		65,665,665		25,592,788		22,609,231

Cost of turnover		(52,539,849)		(43,183,155)		(18,952,235)		(15,287,224)

Gross profit		19,807,306		22,482,510		6,640,553		7,322,007

Distribution cost		(3,333,525)		(3,161,148)		(1,181,237)		(1,029,497)
Administrative expenses		(2,070,348)		(1,584,964)		(628,271)		(546,708)
Finance costs		(534,989)		(526,852)		(220,394)		(162,701)
Other expenses		(1,760,266)		(1,834,002)		(649,076)		(510,628)
Other income		3,502,495		2,605,366		1,305,814		864,382

Profit before taxation		15,610,673		17,980,910		5,267,389		5,936,855

Taxation
	- current	(2,423,620)		(4,519,165)		(507,111)		(1,199,290)
	- deferred	(119,736)		(406,036)		(269,840)		(422,027)
			(2,543,356)		(4,925,201)		(776,951)		(1,621,317)

Profit after taxation		13,067,317		13,055,709		4,490,438		4,315,538

Attributable to:
Owners of the Holding Company		11,935,141		12,052,781		4,020,905		3,930,038
Non-controlling interests		1,132,176		1,002,928		469,533		385,500

			13,067,317		13,055,709		4,490,438		4,315,538

Other comprehensive income for the period:

Items to be reclassified to profit and loss account

In subsequent periods:

Foreign exchange differences

on translation of foreign operation 704,626 852 341,548 14,191

Unrealized gain on re-measurement of available for sale investment			407		-			6,212						-
Deferred tax thereon			(61)		-			(932)						-
			346				-		5,280						-

Total comprehensive income for the period	13,772,289			13,056,561						4,837,266		4,329,729

Attributable to:
Owners of the Holding Company	12,640,113			12,053,633						4,367,733		3,944,229
Non-controlling interests	1,132,176			1,002,928						469,533		385,500

		13,772,289				13,056,561					4,837,266		4,329,729

		(PKR)									(PKR)

Earnings per share - basic and diluted	36.91			37.27						12.43		12.15

Directors' Report

The Directors of your Company have the pleasure in presenting to you the financial results of your Company which include both, stand-alone and consolidated unaudited financial statements for the nine months ended March 31, 2018.

Overview

Cement industry in Pakistan grew by 14.7% to 34.76 million tons during the current nine months in comparison to 30.30 million tons during the same period last year. While local sales volume registered a growth of 17.9% to 31.31 million tons during the current nine months in comparison to 26.55 million tons during the same period last year; export sales volume registered a decline of 8.2% to 3.44 million tons during the current nine months under review as compared to 3.75 million tons in the same period last year.

Your Company achieved an overall growth of 5.6% with total sales volume of 5.84 million tons during the current nine months as compared to 5.53 million tons sold in same period last year. While local cement sales volume registered a growth of 16.9% (North 19.7% and South 13.7%) to reach 5.04 million tons as compared to 4.31 million tons during the same period last year, whereas, local clinker sales volumes declined by 79.5% to 0.06 million tons during the current nine months as compared to 0.29 million tons in the same period last year, resulting in the overall local sales growth of 10.9% to reach 5.10 million tons during the nine months period as compared to 4.60 million tons during the same period last year; export sales volume declined by 20.3% to 0.74 million tons during the current nine months as compared to 0.93 million tons during the same period last year.

The EPS for the current nine months was recorded at PKR 30.31, which is 6.0% lower than the same period last year's EPS of PKR 32.23.

Business Performance

a. Production & Sales Volume Performance

The production and sales statistics of your Company for the nine months ended 2017-18 compared to the same period last year are as follows:




Clinker Production	5,354	5,119	4.6%
Cement Production	5,785	5,209	11.1%
Cement Sales	5,784	5,246	10.2%
Clinker Sales	59	288	(79.5%)

The production and sales volume data is graphically presented as under:

A comparison of the dispatches of the industry and your Company for the nine months ended 2017-18 with the same period last year is presented below:




Cement Industry
Local Sales	31,314	26,551	4,763	17.9%
Export Sales
- Bagged	3,300	3,590	(290)	(8.1%)
- Loose	144	163	(19)	(11.7%)
Total Exports	3,444	3,753	(309)	(8.2%)
Grand Total	34,758	30,304	4,454	14.7%
Lucky Cement
Local Sales
- Cement	5,039	4,311	728	16.9%
- Clinker	59	288	(229)	(79.5%)
Total Local Sales	5,098	4,599	499	10.9%
Export Sales
- Bagged	601	772	(171)	(22.2%)
- Loose	144	163	(19)	(11.7%)
Total Exports	745	935	(190)	(20.3%)
Grand Total	5,843	5,534	309	5.6%


Local Sales	16.3%	17.3%	(5.8%)
Export Sales
- Bagged	18.2%	21.5%	(15.3%)
- Loose	100.0%	100.0%	-
Total Export	21.6%	24.9%	(13.3%)
Grand Total	16.8%	18.3%	(8.2%)

b. Financial Performance

The financial performance of your Company for the nine months ended 2017-18 as compared to the same period last year is presented below:


Gross Revenue	50,626	47,291	7.1%
Net Revenue	35,671	35,241	1.2%
GP	13,093	16,951	(22.8%)
OP	10,930	14,784	(26.1%)
EBITDA	13,122	16,745	(21.6%)
NP	9,802	10,422	(6.0%)
EPS	30.31 / Share	32.23 /Share	(6.0%)

Revenue During the nine months of 2017-18 under review, your Company achieved an overall gross sales revenue growth of 7.1% as compared to the same period last year. This was mainly due to the impact of higher Federal Excise Duty and Sales Tax.	Cost of Sales During the period under review, per ton cost of sales of your Company increased by 16.9% as compared to the same period last year. The increase was mainly attributable to increase in coal and other fuel prices.
Distribution of Gross Revenue		Distribution of Cost of Sales


Gross Profit Your Company achieved gross profit margin of 36.7% for the nine months under review as compared to 48.1% reported during the same period last year.
Net Profit Your Company achieved profit before tax of PKR 11,979.5 million during the current nine months under review as compared to PKR 14,668.8 million reported during the same period last year. Similarly, after tax profit of PKR 9,801.7 million was achieved during the nine months under review as compared to PKR 10,421.8 million reported during the same period last year.
Earnings per share The earnings per share of your Company for the nine months ended March 31, 2018 was PKR 30.31 in comparison to PKR 32.23 reported during the same period last year.

Projects - New and Ongoing

Brownfield cement plant expansion in KPK Province of Pakistan - 2.6 million tons per annum

In view of the continued delay in expansion plans for North, your Company has decided to increase the cement production capacity at its Pezu Plant by 2.6 million tons per annum. In this regard, necessary approvals and NOC have also been secured from the KPK Government.

The project cost is estimated at PKR 17.5 billion based on current exchange rates and target for commercial production is last quarter of calendar year 2019.

Investments

Investment in 1 x 660 MW, supercritical, coal based power project

Your Company has already executed EPC contract, Power Purchase Agreement & Implementation Agreement and also finalized the draft of Coal Supply Agreement. The target for financial close and commercial operations is May 2018 and March 2021, respectively.

The consolidated unaudited financial statements of the Company for the nine months ended March 31, 2018, include the net assets of the project company i.e. Lucky Electric Power Company Limited which is 100% indirectly owned subsidiary of the Company.

Investment in automotive manufacturing plant - Kia Lucky Motors Pakistan Limited [KLM]

KLM started construction of the project in November 2017 and has also signed a New Entrant Agreement with Ministry of Industries & Production under the Automotive Development Policy 2016-2021 in December 2017.The Project aims to start commercial production in second quarter of 2019.

Greenfield clinker production facility in Samawah, Iraq - 1.2 million tons per annum

In order to become self-reliant for clinker availability in Iraq, a greenfield clinker production facility with a capacity of 1.2 million tons per annum is planned to be setup in Samawah, Iraq as a joint venture project with the existing local partner.

The project cost is estimated at USD 109 million and is subject to all regulatory / statutory approvals required under the law. The project aims to start commercial production from the last quarter of calendar year 2019.

Corporate Social Responsibility

Your Company remains fully committed to creating value for the society in which it operates. During the third quarter of the financial year under review, your Company continued to extend a number of scholarships to deserving students from various leading universities of Pakistan. Keeping in view the importance and impact of women empowerment in Pakistan, Lucky Cement in collaboration with Zindagi Trust continued its support for two leading Government girls' schools in Karachi. With the primary focus of social intervention in the development of women education in the country, your Company aims to transform these schools into model educational institutions for the girls of Pakistan.

Your Company also continues to donate towards the cause of community development by supporting CPLC - an institution responsible for the safety and security of citizens in Sindh. Furthermore, contributions towards the community in connection with health-based initiatives and other welfare purposes were also made to highlight the true spirit of charity. Your Company is also an active supporter of Special Olympics Pakistan, Pakistan Welfare Association for the Blind and such other welfare organizations which strive for the betterment of differently abled members of the society.

Outlook

Your Company continues to remain optimistic about volumetric growth for the remaining quarter of the current financial year. Domestic sales are expected to remain strong on the back of private and public sector construction projects as well as mega infrastructure development projects under the China-Pakistan Economic Corridor (CPEC) initiative. Your Company's strong and debt-free financial position and free cash flow generating ability would continue to support investments in projects and avenues which can bring in further operational efficiencies and enhance shareholders' value.

Acknowledgement

Directors of your Company take this opportunity to express their deep sense of gratitude for all the stakeholders for their encouragement and continued support.

We would like to place on record our sincere appreciation for the commitment, dedication and hard work put in by every member of the Lucky family and also for our shareholders, who have always shown their confidence and faith in the Company.

On behalf of the Board

MUHAMMAD YUNUS TABBA MUHAMMAD ALI TABBA

Chairman / Director Chief Executive / Director

Karachi: April 26, 2018

This information is provided by RNS

The company news service from the London Stock Exchange

END

QRTMMGZDGNGGRZM

Related Shares:

FTSE 100 Latest

Value8,634.80

Change51.99