Last checked at 7 May 2019 10:44
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LCL/ANNO/2018-19/ April 26, 2019
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, 2019
This is to inform you that the Board of Directors of our Company in their Meeting held on Friday, April 26, 2019 at 3:30 p.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 Statements of Financial Position, Statements of Profit and Loss and Other Comprehensive Income and Directors' Report are annexed.
The 3rd quarterly report of the Company for the period ended March 31, 2019 will also be transmitted through PUCARS separately, within the specified time.
Yours truly
for LUCKY CEMENT LIMITED
IRFAN CHAWALA
Director Finance / CFO
|
| Unconsolidated Condensed Interim Statement of Financial Position |
| ||||||||
|
| As at March 31, 2019 |
| ||||||||
|
|
| (Un-audited) |
|
|
| (Audited) |
|
| ||
|
|
| March 31, 2019
|
|
|
| June 30, 2018 |
|
| ||
|
|
| (PKR in '000') |
| |||||||
ASSETS |
|
|
|
|
|
|
|
| |||
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
| |||
| Fixed assets |
|
|
|
|
|
|
|
| ||
| Property, plant and equipment |
| 48,335,852 |
|
|
| 40,913,168 |
|
| ||
| Intangible assets |
| 28,634 |
|
|
| 55,023 |
|
| ||
|
|
| 48,364,486 |
|
|
| 40,968,191 |
|
| ||
| Long-term investments |
| 33,252,760 |
|
|
| 24,981,078 |
|
| ||
| Long-term loans and advances |
| 107,380 |
|
|
| 90,996 |
|
| ||
| Long-term deposits |
| 3,175 |
|
|
| 3,175 |
|
| ||
|
|
| 81,727,801 |
|
|
| 66,043,440 |
|
| ||
CURRENT ASSETS |
|
|
|
|
|
|
|
| |||
| Stores and spares |
| 7,396,331 |
|
|
| 7,783,111 |
|
| ||
| Stock-in-trade |
| 2,422,497 |
|
|
| 2,796,658 |
|
| ||
| Trade debts |
| 2,253,968 |
|
|
| 2,424,470 |
|
| ||
| Loans and advances |
| 420,692 |
|
|
| 420,671 |
|
| ||
| Trade deposits and short term prepayments |
| 147,945 |
|
|
| 67,577 |
|
| ||
| Accrued return |
| 159,985 |
|
|
| 142,881 |
|
| ||
| Other receivables |
| 1,890,079 |
|
|
| 1,311,180 |
|
| ||
| Tax refunds due from the Government |
| 538,812 |
|
|
| 538,812 |
|
| ||
| Short term investment |
| 1,040,199 |
|
|
| 34,956 |
|
| ||
| Cash and bank balances |
| 23,071,311 |
|
|
| 27,435,361 |
|
| ||
|
|
| 39,341,819 |
|
|
| 42,955,677 |
|
| ||
TOTAL ASSETS |
| 121,069,620 |
|
|
| 108,999,117 |
|
| |||
|
|
|
|
|
|
|
|
|
| ||
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
| ||
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
| |||
Share capital |
| 3,233,750 |
|
|
| 3,233,750 |
|
| |||
Reserves |
| 88,834,985 |
|
|
| 83,133,072 |
|
| |||
|
|
| 92,068,735 |
|
|
| 86,366,822 |
|
| ||
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |||
| Long-term deposits |
| 89,594 |
|
|
| 94,394 |
|
| ||
| Deferred liabilities |
| 6,756,553 |
|
|
| 7,300,639 |
|
| ||
|
|
| 6,846,147 |
|
|
| 7,395,033 |
|
| ||
CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |||
| Trade and other payables |
| 16,985,019 |
|
|
| 13,121,005 |
|
| ||
| Short term running finance |
| 2,100,000 |
|
|
| - |
|
| ||
| Unclaimed dividend |
| 59,716 |
|
|
| 47,945 |
|
| ||
| Unpaid dividend |
| 89,330 |
|
|
| 82,960 |
|
| ||
| Taxation - net |
| 2,920,673 |
|
|
| 1,985,352 |
|
| ||
|
|
| 22,154,738 |
|
|
| 15,237,262 |
|
| ||
|
|
| 29,000,885 |
|
|
| 22,632,295 |
|
| ||
TOTAL EQUITY AND LIABILITIES |
| 121,069,620 |
|
|
| 108,999,117 |
|
| |||
Unconsolidated Condensed Interim Statement of Profit or Loss and Other Comprehensive Income |
| |||||||||||||
For the 3rd quarter and nine months ended March 31, 2019 (Un-audited) |
| |||||||||||||
|
|
|
| Nine Months Ended | Quarter Ended | |||||||||
|
|
|
|
| March 31, |
| March 31, |
| March 31, |
| March 31, |
| ||
|
|
|
|
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| ||
|
|
|
|
| (PKR in '000') |
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Gross sales |
|
| 52,314,992 |
| 50,626,090 |
| 17,429,651 |
| 17,774,013 |
| ||||
Less: | Sales tax and federal excise duty |
| 14,061,754 |
| 14,240,681 |
| 4,577,359 |
| 5,090,856 |
| ||||
| Rebates and commission |
| 732,154 |
| 714,820 |
| 286,283 |
| 266,396 |
| ||||
|
|
|
|
| 14,793,908 |
| 14,955,501 |
| 4,863,642 |
| 5,357,252 |
| ||
Net sales |
|
| 37,521,084 |
| 35,670,589 |
| 12,566,009 |
| 12,416,761 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Cost of sales |
|
| (26,261,232) |
| (22,578,034) |
| (8,730,172) |
| (8,209,947) |
| ||||
Gross profit |
|
| 11,259,852 |
| 13,092,555 |
| 3,835,837 |
| 4,206,814 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Distribution cost |
| (2,101,175) |
| (1,348,647) |
| (726,666) |
| (535,464) |
| |||||
Administrative expenses |
| (881,688) |
| (813,960) |
| (322,043) |
| (257,457) |
| |||||
Other expenses |
| (875,770) |
| (985,349) |
| (305,168) |
| (368,600) |
| |||||
Other income |
|
| 2,349,194 |
| 2,034,900 |
| 742,623 |
| 839,562 |
| ||||
Profit before taxation |
| 9,750,413 |
| 11,979,499 |
| 3,224,583 |
| 3,884,855 |
| |||||
Taxation |
|
|
|
|
|
|
|
|
|
|
| |||
| -current |
|
| (2,203,674) |
| (2,170,216) |
| (770,084) |
| (683,533) |
| |||
| -deferred |
| 747,199 |
| (7,597) |
| 338,650 |
| 53,231 |
| ||||
|
|
|
|
| (1,456,475) |
| (2,177,813) |
| (431,434) |
| (630,302) |
| ||
Profit after taxation |
| 8,293,938 |
| 9,801,686 |
| 2,793,149 |
| 3,254,553 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Other comprehensive income: |
|
|
|
|
|
|
|
|
| |||||
Other comprehensive loss which will not be reclassified to statement of |
|
|
|
|
|
|
| |||||||
profit or loss in subsequent periods |
|
|
|
|
|
|
|
|
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Unrealized loss on remeasurement of equity investment at fairvalue through other comprehensive income |
(5,912) |
|
407 |
|
5,026 |
|
6,212 |
| |||||
|
|
|
|
| ||||||||||
| Deferred tax thereon |
| 887 |
| (61) |
| (753) |
| (932) |
| ||||
|
|
|
|
| (5,025) |
| 346 |
| 4,273 |
| 5,280 |
| ||
Total comprehensive income for the period |
|
| 8,288,913 |
| 9,802,032 |
| 2,797,422 |
| 3,259,833 |
| ||||
|
|
|
|
| (PKR) |
| (PKR) | ||||
Earnings per share - basic and diluted |
| 25.65 |
| 30.31 |
| 8.64 |
| 10.06 | |||
Condensed Interim Consolidated Statement of Financial Position |
| |||||||||||
| As at March 31, 2019 |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| (Un-audited) |
|
|
| (Audited) |
|
| |
|
|
|
|
| March 31, |
|
|
| June 30, |
|
| |
|
|
|
|
| 2019 |
|
|
| 2018 |
|
| |
|
|
|
|
| (PKR in '000') |
|
| |||||
| ASSETS |
|
|
|
|
|
|
|
|
| ||
| NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||
|
| Fixed assets |
|
|
|
|
|
|
|
|
| |
|
| Property, plant and equipment |
|
| 108,618,457 |
|
|
| 73,865,002 |
|
| |
|
| Intangible assets |
|
| 7,697,697 |
|
|
| 7,943,988 |
|
| |
|
|
|
|
| 116,316,154 |
|
|
| 81,808,990 |
|
| |
|
| Long-term investments |
|
| 15,897,024 |
|
|
| 13,642,987 |
|
| |
|
| Long-term loans and advances |
|
| 624,376 |
|
|
| 534,786 |
|
| |
|
| Long-term deposits and prepayments |
|
| 50,696 |
|
|
| 53,325 |
|
| |
|
|
|
|
| 132,888,250 |
|
|
| 96,040,088 |
|
| |
| CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||
|
| Stores, spares and consumables |
|
| 8,523,012 |
|
|
| 8,854,536 |
|
| |
|
| Stock-in-trade |
|
| 12,741,816 |
|
|
| 12,088,621 |
|
| |
|
| Trade debts |
|
| 4,726,343 |
|
|
| 5,142,591 |
|
| |
|
| Loans and advances |
|
| 1,799,055 |
|
|
| 1,117,485 |
|
| |
|
| Trade deposits and short-term prepayments |
|
| 2,444,657 |
|
|
| 1,108,185 |
|
| |
|
| Other receivables |
|
| 5,514,349 |
|
|
| 3,431,926 |
|
| |
|
| Tax refunds due from the Government |
|
| 538,812 |
|
|
| 538,812 |
|
| |
|
| Taxation receivable |
|
| 2,258,962 |
|
|
| 2,221,851 |
|
| |
|
| Accrued return |
|
| 170,570 |
|
|
| 161,742 |
|
| |
|
| Short term investments |
|
| 1,040,199 |
|
|
| 34,956 |
|
| |
|
| Cash and bank balances |
|
| 27,363,958 |
|
|
| 34,382,272 |
|
| |
|
|
|
|
| 67,121,733 |
|
|
| 69,082,977 |
|
| |
| TOTAL ASSETS |
|
| 200,009,983 |
|
|
| 165,123,065 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| |
| EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
| ||
| SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
|
| ||
| Share capital |
|
| 3,233,750 |
|
|
| 3,233,750 |
|
| ||
| Reserves |
|
| 102,313,161 |
|
|
| 93,913,157 |
|
| ||
|
| Attributable to the owners of the Holding Company |
|
| 105,546,911 |
|
|
| 97,146,907 |
|
| |
|
| Non-controlling interests |
|
| 15,665,378 |
|
|
| 12,428,264 |
|
| |
|
| Total equity |
|
| 121,212,289 |
|
|
| 109,575,171 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
| NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
| |
|
| Long-term finances |
|
| 21,682,923 |
|
|
| 8,789,887 |
|
| |
|
| Long-term deposits |
|
| 89,594 |
|
|
| 94,394 |
|
| |
|
| Deferred liabilities |
|
| 9,777,858 |
|
|
| 10,640,736 |
|
| |
|
| Other long term liabilities |
|
| 4,466,555 |
|
|
| 3,431,948 |
|
| |
|
|
|
|
| 36,016,930 |
|
|
| 22,956,965 |
|
| |
| CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||
|
| Trade and other payables |
|
| 27,796,084 |
|
|
| 20,242,935 |
|
| |
|
| Unclaimed dividend |
|
| 154,452 |
|
|
| 47,945 |
|
| |
|
| Unpaid dividend |
|
| 89,330 |
|
|
| 82,960 |
|
| |
|
| Provision for taxation |
|
| 3,297,314 |
|
|
| 1,992,278 |
|
| |
|
| Accrued return |
|
| 407,412 |
|
|
| 272,146 |
|
| |
|
| Short-term borrowings and running finance |
|
| 8,097,001 |
|
|
| 7,332,327 |
|
| |
|
| Current portion of liabilities against assets subject to finance lease |
|
| 89 |
|
|
| 822
|
|
| |
|
| Current portion of long-term finances |
|
| 2,939,082 |
|
|
| 2,619,516 |
|
|
|
|
|
|
|
| 42,780,764 |
|
|
| 32,590,929 |
|
|
|
|
|
|
|
| 78,797,694 |
|
|
| 55,547,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| TOTAL EQUITY AND LIABILITIES |
|
| 200,009,983 |
|
|
| 165,123,065 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income | |||||||||||
For the 3rd quarter and nine months ended March 31, 2019 (Un-audited) | |||||||||||
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
| Nine Months Ended |
| Quarter Ended | ||||||
|
|
| March 31, 2019 |
| March 31, 2018 |
| March 31, 2019 |
| March 31, 2018 |
| |
|
|
|
|
|
|
| |||||
|
|
| (PKR in '000') |
| (PKR in '000') | ||||||
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
Revenue |
| 103,320,389 |
| 92,601,630 |
| 35,466,328 |
| 32,835,542 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Less: | Sales tax and excise duty |
| 16,764,874 |
| 16,469,999 |
| 5,463,025 |
| 5,915,584 |
| |
| Rebates and commission |
| 4,489,902 |
| 3,784,476 |
| 1,657,541 |
| 1,327,170 |
| |
|
|
| 21,254,776 |
| 20,254,475 |
| 7,120,566 |
| 7,242,754 |
| |
|
|
| 82,065,613 |
| 72,347,155 |
| 28,345,762 |
| 25,592,788 |
| |
|
|
|
|
|
|
|
|
|
|
| |
Cost of sales |
| (63,799,985) |
| (52,539,849) |
| (21,779,033) |
| (18,952,235) |
| ||
Gross profit |
| 18,265,628 |
| 19,807,306 |
| 6,566,729 |
| 6,640,553 |
| ||
|
|
|
|
|
|
|
|
|
|
| |
Distribution cost |
| (4,296,137) |
| (3,333,525) |
| 1,458,307) |
| (1,181,237) |
| ||
Administrative expenses |
| (2,308,421) |
| (2,070,348) |
| (776,794) |
| (628,271) |
| ||
Finance cost |
| (1,151,277) |
| (534,989) |
| (376,944) |
| (220,394) |
| ||
Other expenses |
| (1,313,476) |
| (1,760,266) |
| (411,496) |
| (649,076) |
| ||
Other income |
| 3,061,838 |
| 3,502,495 |
| 1,138,122 |
| 1,305,814 |
| ||
Profit before taxation |
| 12,258,155 |
| 15,610,673 |
| 4,681,310 |
| 5,267,389 |
| ||
|
|
|
|
|
|
|
|
|
|
| |
Taxation |
|
|
|
|
|
|
|
|
| ||
| - current |
| (3,332,147) |
| (2,423,620) |
| (1,209,033) |
| (507,111) |
| |
| - deferred |
| 1,071,569 |
| (119,736) |
| 388,038 |
| (269,840) |
| |
|
| (2,260,578) |
| (2,543,356) |
| (820,995) |
| (776,951) |
| ||
Profit after taxation |
| 9,997,577 |
| 13,067,317 |
| 3,860,315 |
| 4,490,438 |
| ||
|
|
|
|
|
|
|
|
|
|
| |
Attributable to: |
|
|
|
|
|
|
|
|
| ||
Owners of the Holding Company |
| 9,260,243 |
| 11,935,141 |
| 3,464,738 |
| 4,020,905 |
| ||
Non-controlling interests |
| 737,334 |
| 1,132,176 |
| 395,577 |
| 469,533 |
| ||
|
| 9,997,577 |
| 13,067,317 |
| 3,860,315 |
| 4,490,438 |
| ||
|
|
|
|
|
|
|
|
|
| ||
Other comprehensive income for the period |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
| ||
Other comprehensive income which may be reclassified to statement of profit or loss in subsequent periods |
| ||||||||||
|
|
|
|
|
|
|
|
|
| ||
Foreign exchange differences on translation of foreign operations |
| 1,339,539 |
| 704,626 |
| 138,983 |
| 341,548 |
| ||
|
|
|
|
|
|
|
|
|
|
| |
Other comprehensive loss which will not be reclassified to statement of profit or loss in subsequent periods |
| ||||||||||
Unrealized loss on remeasurement of equity investment atfair value through othercomprehensive income | (5,912) |
| 407 |
|
5,026 |
|
6,212 |
| |||
| Deferred tax thereon |
| 887 |
| (61) |
| (753) |
| (932) |
| |
|
|
| (5,025) |
| 346 |
| 4,273 |
| 5,280 |
| |
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Total comprehensive income for the period |
| 11,332,091 |
| 13,772,289 |
| 4,003,571 |
| 4,837,266 |
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Attributable to: |
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Owners of the Holding Company |
| 10,594,757 |
| 12,640,113 |
| 3,607,994 |
| 4,367,733 |
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Non-controlling interests |
| 737,334 |
| 1,132,176 |
| 395,577 |
| 469,533 |
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|
| 11,332,091 |
| 13,772,289 |
| 4,003,571 |
| 4,837,266 |
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| (PKR) |
| (PKR) | |||||||
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Earnings per share - basic and diluted |
| 28.64 |
| 36.91 |
| 10.71 |
| 12.43 |
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Directors' Report (Condensed)
The Directors have the pleasure in presenting to you the unaudited financial results of your Company which include both, stand-alone and consolidated financial statements for the nine months ended March 31, 2019.
Overview
The export performance of the Cement Industry has been exceptional during the the current financial year. The drop in local sales reduced the overall Industry volumes by 0.5% to 34.58 million tons for the nine months ended March 31, 2019 in comparison to 34.76 million tons during the same period last year. Export sales volume registered an increase of 49.0% to reach 5.13 million tons as compared to 3.44 million tons during the nine months of the current financial year and the local sales volume registered a decline of 6.0% to 29.45 million tons during the nine months ended March 31, 2019 in comparison to 31.31 million tons during the same period last year.
In comparison to the Cement Industry, your Company's overall sales grew by 1.9% to reach 5.95 million tons during the nine months of the current financial year. The local cement sales volume registered a decline of 12.2% and was 4.42 million tons in comparison to 5.04 million tons last year and the export sales volumes of the Company improved by 105.5% to 1.53 million tons as compared to 0.74 million tons during the same period last year.
On a consolidated basis, your Company achieved a gross turnover of PKR 103.32 billion which is 11.6% higher as compared to the same period last year's turnover of PKR 92.60 billion.
Moreover, consolidated Net Profit of the Company was PKR 10.00 billion of which PKR 0.74 billion is attributable to non-controlling interests which translates into an EPS of PKR 28.64 during the nine months ended March 31, 2019 as compared to PKR36.91 during the same period last year.
Business Performance
a. Production & Sales Volume Performance - Standalone
The standalone production and sales statistics of your Company for the current nine months ended March 31, 2019 compared to the same period last year are as follows:
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Clinker Production | 5,448 | 5,354 | 1.8% |
Cement Production | 5,183 | 5,785 | (10.4%) |
Cement Sales | 5,183 | 5,784 | (10.4%) |
Clinker Sales | 771 | 59 | 1,206.8% |
The production and sales volume data is graphically presented as under:
A comparison of the dispatches of the Industry and your Company's standalone business for the nine months of the current financial year 2018-19 in comparison with the same period last year is presented below:
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Cement Industry |
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Local Sales | 29,448 |
| 31,314 |
| (1,866) |
| (6.0%) |
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Export Sales |
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- Bagged | 3,353 |
| 3,300 |
| 53 |
| 1.6% |
- Loose | 95 |
| 144 |
| (49) |
| (34.0%) |
- Clinker | 1,684 |
| - |
| 1,684 |
| 100.0% |
Total Exports | 5,132 |
| 3,444 |
| 1,688 |
| 49.0% |
Grand Total | 34,580 |
| 34,758 |
| (178) |
| (0.5%) |
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Lucky Cement |
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Local Sales |
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- Cement | 4,423 |
| 5,039 |
| (616) |
| (12.2%) |
- Clinker | - |
| 59 |
| (59) |
| (100.0%) |
Total Local Sales | 4,423 |
| 5,098 |
| (675) |
| (13.2%) |
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Export Sales |
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- Bagged | 665 |
| 601 |
| 64 |
| 10.6% |
- Loose | 95 |
| 144 |
| (49) |
| (34.0%) |
- Clinker | 771 |
| - |
| 771 |
| 100.0% |
Total Exports | 1,531 |
| 745 |
| 786 |
| 105.5% |
Grand Total | 5,954 |
| 5,843 |
| 111 |
| 1.9% |
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Local Sales | 15.0% |
| 16.3% |
| (8.0%) |
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Export Sales |
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- Bagged | 19.8% |
| 18.2% |
| 8.8% |
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- Loose | 100.0% |
| 100.0% |
| 0.0% |
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- Clinker | 45.8% |
| - |
| 100.0% |
|
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Total Export | 29.8% |
| 21.6% |
| 38.0% |
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Grand Total | 17.2% |
| 16.8% |
| 2.4% |
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b. Financial Performance - Standalone
The standalone financial performance of your Company for the nine months ended March 31, 2019 as compared to the same period last year is presented below:
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Revenue During the nine months ended of the current financial year under review, your Company achieved an overall gross sales revenue growth of 3.3% as compared to the same period last year. This was mainly attributable to higher export sales volumes for clinker. |
Cost of Sales During the nine months ended under review, per ton cost of sales of your Company increased by 14.1% as compared to the same period last year. This increase was mainly on account of increase in coal, packing material and other fuel prices. |
Distribution of Gross Revenue | Distribution of Cost of Sales |
Gross Profit Your Company achieved a gross profit margin of 30.0% for the nine months under review as compared to 36.7% reported during the same period last year. |
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Net Profit
Your Company achieved a profit before tax of PKR 9,750.4 million during the nine months under review as compared to PKR 11,979.5 million reported during the same period last year. Similarly, after tax profit of PKR 8,293.9 million was achieved during the nine months under review as compared to PKR 9,801.7 million reported during the same period last year.
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Earnings per share
The earnings per share of your Company for the nine months ended March 31, 2019 was PKR 25.65 in comparison to PKR 30.31 reported during the same period last year. |
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Projects - New and Ongoing
Brownfield cement plant expansion in KPK Province of Pakistan - 2.6 million tons per annum
The civil work at project site is progressing as per target timelines and with the arrival of plant & machinery shipments, erection and fabrication work is also progressing as planned to achieve commercial operations in the second quarter of the financial year 2019-20.
Investments
Investment in 1 x 660 MW, supercritical, coal based power project
The construction activity for setting up 660 MW super critical, lignite coal-based power plant is progressing as per project implementation schedule. Target to achieve commercial operations is 1st March 2021.
Investment in automotive manufacturing plant - Kia Lucky Motors Pakistan Limited [KLM]
The manufacturing facility is complete and ready to start production. KLM has decided to start booking of locally produced 2000 CC SUV "SPORTAGE" from June 2019 and 1000 CC small size hatchback "PICANTO" from August 2019. The sales launch of the SPORTAGE is scheduled towards end of July / early August 2019 and that of PICANTO in the month of October 2019.
Greenfield clinker production facility in Samawah, Iraq - 1.2 million tons per annum
The contracts for civil design and civil works have been finalised. The contract for Power Plant has also been finalized with Wartsila and letter of credit will be established by the end of April 2019. Levelling work at project site is in progress. Target to achieve commercial production is for the first quarter of financial year 2020-21.
Corporate Social Responsibility
For the past 25 years, your Company has remained fully committed towards improvement in the society and the communities in which it operates. The primary focus of CSR initiatives is in the sectors of Education, Women empowerment, Community development, Health and Environment conservation.
Education / Scholarships
Continuing with its longer-term vision to support the deserving and less privileged segments of the society, your Company continued to extend a number of scholarships to various students of IBA, IoBM, and other leading universities in Pakistan and abroad.
Women Empowerment
Your Company continues to prioritize its commitment towards women's education and continues to work in collaboration with Zindagi Trust, to support the two leading Government girls' schools in Karachi. These schools have been transformed into model girls' educational institutions in Pakistan.
Health Initiatives
The quality healthcare has always remained your Company's priority, especially through the financial support to Aziz Tabba Foundation: a prominent philanthropic institution that is running Tabba Heart and Tabba Kidney institutes, which provide vital support in bridging the gap of specialized and modern medical care in the Country. In the current financial year, your Company also provided financial support to Shaukat Khanum Memorial Cancer Hospital and Pakistan Welfare Association of the Blind.
Environment Conservation
Your Company always takes serious responsibility towards the conservation of Environment and takes it into account in every sphere of its operations. With an effort to further highlight the importance of environment preservation, your company continued with its tree plantation drive in and around its manufacturing sites.
Outlook
With the prevailing economic uncertainties and macro-economic situation, your Company believes that in short to medium-term, the outlook of the Cement industry will be challenging for the domestic sales. However, export sales are anticipated to remain strong in view of favorable market dynamics and increasing demand for Clinker in the regional countries.
In the long-term, Cement industry's outlook remains promising on account of Government's key initiatives to build both small and mega-capacity / multipurpose water reservoirs / dams and construction of low-cost affordable houses for public at large.
Your Company's robust financial position and free cash flow generating ability shall support its Vision to improve operational efficiencies as well as make investments in new projects, which can bring in further improvement in efficiencies and enhance shareholders' value.
Acknowledgement
Directors of your Company take pleasure in expressing their sincere gratitude and appreciation for outstanding commitment and contribution of all the employees and continued trust and reliance placed in the Company by all the stakeholders.
On behalf of the Board
MUHAMMAD YUNUS TABBA MUHAMMAD ALI TABBA
Chairman / Director Chief Executive / Director
Karachi: April 26, 2019