LUCK 3QFY25 Diluted EPS Rs9.2
Staff Report:
Lucky Cement Limited (LUCK) announced its 3QFY25 result on Monday wherein the company posted unconsolidated net earnings of Rs13.5bn (Diluted EPS Rs9.2) compared to net earnings of Rs4.9bn (Diluted EPS Rs3.4) during same period last year, up by 174%YoY.
The result came above our estimate due to 1) Higher than expected other income and 2) lower effective taxation. Just to recall, this result incorporates the stock split with total outstanding shares of 1.46bn shares.
During 3QFY25, net revenue surged by 10%YoY to Rs34.5bn primarily driven by elevated exports (up 52%YoY) while local dispatches remain stagnant.
LUCK’s gross margin clocked in at 33% as compared to 29% during the same period last year (up 4ppt). The increase in margins is mainly led by lower coal cost and efficient power mix.
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Moreover, other income stood at Rs10.9bn (up 3.8xYoY) primarily due to dividend income from Lucy Electric Power (LEPCL) of Rs6bn and Lucky Motors (LMC) with Rs1.3bn during the quarter.
Finance cost stood at Rs287mn (down 26%YoY) amid lower interest rates while operating cost stood at Rs3.5bn (up 9%YoY) due to rise in export sales.
During 3QFY25, effective taxation stood at 22% versus 31% during the same period last year.
On sequential basis, earnings jumped by 86%QoQ mainly due to rise in other income (up 3.1x) and lower effective taxation,” Sherman Research said.
