Lucky Cement announces 3.15 million tonne capacity increase
The company posted a profit of Rs 12.44 billion for the half year ended December 31, 2020
In view of the increasing demand for cement, Lucky Cement has announced an annual increase in cement production capacity at its piezo plant by 3.15 million tonnes. Work on the project is expected to begin in the current financial year. Will be completed within 2 years. The expansion project will increase the company’s production capacity to 15.3 million tonnes per annum.
Lucky Cement has declared a gross profit after tax of Rs. 12.44 billion for the half year ended December 31, 2020, out of which Rs. 2.08 billion belongs to minority shareholders (non-controlling interest). The company’s earnings per share stood at Rs 32.05 as compared to Rs 9.93 in the same period last year.
Overall, the company’s turnover increased by 56 per cent to Rs 123.72 billion from Rs 79.56 billion in the same period last year.
During the period under review, the company’s gross net profit (attributed to the owners of the holding company) increased by 223% over the same period last year. The main reason for the increase in net profit was the 134% increase in the profit of the holding company, which was made possible by the increase in the efficiency of the new production line in the north and the reduction in costs. Lucky Motor Corporation’s net profit due to growth in automobile sales also supported the holding company’s net profit growth.
In addition, LCL Investment Holding Limited performed better than the same period last year. Both Congo and Iraq projects performed better due to lower production costs, stable prices and increased sales volumes. On an individual basis, Lucky Cement’s total sales volume increased by 35.9% to 4.99 million tonnes. The company’s domestic sales in the first six months of the current financial year stood at 3.66 million tonnes, up 41.2 per cent from 2.59 million tonnes in the same period last fiscal.