KARACHI: Lucky Cement has reported net earnings of Rs13.69 billion in the year ended June 2017, up 6% from Rs12.94 billion in the previous year.
Earnings per share rose to Rs42.34 in financial year 2016-17 compared to Rs40.03 in the previous year.
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The company declared final dividend of Rs12 per share for FY17, according to a notice sent to the Pakistan Stock Exchange (PSX) on Monday.
Lucky Cement’s stock fell 0.50% at Rs707.85 at the PSX whereas the KSE 100-share Index closed at 46,010, up 98 points or 0.21%.
Lucky’s earnings were higher than expectation because of lower effective tax rate at around 20% in the fourth quarter in the wake of a 2% rebate. This was due to Shariah-compliant status of the company coupled with increase in deferred taxes, according to a research report of Alfalah Securities.
Revenues fell 11% quarter-on-quarter in the fourth quarter of FY17 due to a 10% decline in cement sales. The dip in dispatches was the result of a 9% quarter-on-quarter drop in domestic demand coupled with weakening exports, which were down 20%.
In an effort to set up a 2.3-million-ton Greenfield plant in Punjab, Lucky Cement is in negotiations with the provincial government in order to get the necessary authorisation.
On the other hand, extension of the Karachi plant is expected to be completed by the end of calendar year 2017. The project cost is estimated at $30 million.
