Last checked at 29 Jul 2019 11:39
LCK/CS/FR2019/2019-20/ July 27, 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 year ended June 30, 2019
We have to inform you that the Board of Directors of our Company in their Meeting held on Saturday, July 27, 2019 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 65%
(ii) Bonus Shares Nil
(iii) Right Shares Nil
(iv) Any other Entitlement / Corporate Action Nil
(v) Any other Price-Sensitive Information Nil
Contd...P/2
The financial results of the Company consisting of Statements of Financial Position, Statements of Profit and Loss and Other Comprehensive Income and Directors' Report (Condensed) are annexed.
The 26th Annual General Meeting (AGM) of the Company will be held on Friday, September 27, 2019 at 11:30 a.m., at the registered office of the Company situated at factory premises Pezu, District Lakki Marwat, Khyber Pukhtunkhwa.
The Share Transfer Books of the Company will remain closed from Friday, September 13, 2019 to Friday, September 27, 2019 (both days inclusive). Transfers received at our Share Registrar M/s. CDC Share Registrar Services Limited, CDC House, 99-B, Block 'B', S.M.C.H.S. Main Shahrah-e-Faisal, Karachi-74400 at the close of business on Thursday, September 12, 2019 will be treated in time for the purpose of above entitlement to the transferees.
We will be transmitting in electronic form of our Annual Report, 2019 according to Clause 5.6.4 of PSX Regulations as per your recently issued notice having # PSX/N-4207 dated July 13, 2018.
Yours truly,
For: LUCKY CEMENT LIMITED
IRFAN CHAWALA
Director Finance / CFO
UNCONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||||
AS AT JUNE 30, 2019 | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2019 |
|
|
| 2018 |
|
|
|
|
| (PKR in '000') |
| ||||
ASSETS |
|
|
|
|
|
|
|
| |
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Fixed assets |
|
|
|
|
|
|
|
|
| Property, plant and equipment |
|
| 57,276,184 |
|
|
| 40,913,168 |
|
| Intangible assets |
|
| 18,152 |
|
|
| 55,023 |
|
|
|
|
| 57,294,336 |
|
|
| 40,968,191 |
|
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
|
| 34,313,588 |
|
|
| 24,981,078 |
|
| Long-term loans and advances |
|
| 99,316 |
|
|
| 90,996 |
|
| Long-term deposits |
|
| 3,175 |
|
|
| 3,175 |
|
|
|
|
| 91,710,415 |
|
|
| 66,043,440 |
|
CURRENT ASSETS |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Stores and spares |
|
| 6,809,724 |
|
|
| 7,783,111 |
|
| Stock-in-trade |
|
| 4,253,020 |
|
|
| 2,796,658 |
|
| Trade debts |
|
| 2,058,719 |
|
|
| 2,424,470 |
|
| Loans and advances |
|
| 686,525 |
|
|
| 420,671 |
|
| Trade deposits and short-term prepayments |
|
| 74,223 |
|
|
| 67,577 |
|
| Accrued return |
|
| 113,869 |
|
|
| 142,881 |
|
| Other receivables |
|
| 2,130,907 |
|
|
| 1,311,180 |
|
| Tax refunds due from the Government |
|
| 538,812 |
|
|
| 538,812 |
|
| Short term investments |
|
| 1,055,754 |
|
|
| 34,956 |
|
| Cash and bank balances |
|
| 15,657,246 |
|
|
| 27,435,361 |
|
|
|
|
| 33,378,799 |
|
|
| 42,955,677 |
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
| 125,089,214 |
|
|
| 108,999,117 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Share Capital |
|
| 3,233,750 |
|
|
| 3,233,750 |
|
| Reserves |
|
| 91,084,667 |
|
|
| 83,133,072 |
|
|
|
|
| 94,318,417 |
|
|
| 86,366,822 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Long-term deposits |
|
| 90,264 |
|
|
| 94,394 |
|
| Deferred liabilities |
|
| 7,102,483 |
|
|
| 7,300,639 |
|
|
|
|
| 7,192,747 |
|
|
| 7,395,033 |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Trade and other payables |
|
| 19,195,617 |
|
|
| 13,121,005 |
|
| Short term borrowing |
|
| 2,900,000 |
|
|
| - |
|
| Unclaimed dividend |
|
| 53,953 |
|
|
| 47,945 |
|
| Unpaid dividend |
|
| 91,119 |
|
|
| 82,960 |
|
| Taxation - net |
|
| 1,337,361 |
|
|
| 1,985,352 |
|
|
|
|
| 23,578,050 |
|
|
| 15,237,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 30,770,797 |
|
|
| 22,632,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
| 125,089,214 |
|
|
| 108,999,117 |
| |
|
|
|
|
|
|
|
|
|
|
UNCONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | ||||||||
FOR THE YEAR ENDED JUNE 30, 2019 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| 2019 |
|
|
| 2018 |
|
|
|
| (PKR in '000') |
| ||||
Gross sales |
| 67,547,938 |
|
|
| 67,376,579 |
| |
|
|
|
|
|
|
|
|
|
Less: | Sales tax and federal excise duty |
| 18,523,888 |
|
|
| 18,875,112 |
|
| Rebates and commission |
| 1,002,651 |
|
|
| 959,743 |
|
|
|
| 19,526,539 |
|
|
| 19,834,855 |
|
Net sales |
| 48,021,399 |
|
|
| 47,541,724 |
| |
|
|
|
|
|
|
|
|
|
Cost of sales |
| (34,037,568) |
|
|
| (30,589,363) |
| |
Gross profit |
| 13,983,831 |
|
|
| 16,952,361 |
| |
|
|
|
|
|
|
|
|
|
Distribution cost |
| (2,728,809) |
|
|
| (1,992,454) |
| |
Administrative expenses |
| (1,227,872) |
|
|
| (1,089,446) |
| |
Other expenses |
| (1,047,617) |
|
|
| (1,346,369) |
| |
Other income |
| 3,241,682 |
|
|
| 2,594,563 |
| |
Profit before taxation |
| 12,221,215 |
|
|
| 15,118,655 |
| |
|
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
| |
| - current |
| (2,140,079) |
|
|
| (3,037,587) |
|
| - deferred |
| 409,093 |
|
|
| 116,022 |
|
|
|
| (1,730,986) |
|
|
| (2,921,565) |
|
Profit after taxation |
| 10,490,229 |
|
|
| 12,197,090 |
| |
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Other comprehensive income / (loss) which will not be reclassified |
|
|
|
|
|
|
| |
to statement of profit or loss in subsequent periods |
|
|
|
|
|
|
| |
| Gain/(loss) on remeasurements of post retirement benefit obligation |
| 80,166 |
|
|
| (149,249) |
|
| Deferred tax thereon |
| (21,645) |
|
|
| 40,297 |
|
|
|
| 58,521 |
|
|
| (108,952) |
|
| Unrealized loss on remeasurement of equity instrument |
|
|
|
|
|
|
|
| at fair value through other comprehensive income |
| (11,947) |
|
|
| (10,496) |
|
| Deferred tax thereon |
| 1,792 |
|
|
| 1,574 |
|
|
|
| (10,155) |
|
|
| (8,922) |
|
|
|
| 48,366 |
|
|
| (117,874) |
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
| 10,538,595 |
|
|
| 12,079,216 |
| |
|
|
|
|
|
|
|
|
|
|
|
| (PKR) |
| ||||
Earnings per share - basic and diluted |
| 32.44 |
|
|
| 37.72 |
| |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | |||||||||
AS AT JUNE 30, 2019 | |||||||||
|
|
| 2019 |
|
|
| 2018 |
|
|
|
|
| (PKR in '000) |
|
| ||||
ASSETS |
|
|
|
|
|
|
|
| |
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
| |
| Fixed assets |
|
|
|
|
|
|
|
|
| Property, plant and equipment |
| 135,475,796 |
|
|
| 73,865,002 |
|
|
| Intangible assets |
| 7,653,720 |
|
|
| 7,943,988 |
|
|
|
|
| 143,129,516 |
|
|
| 81,808,990 |
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
| 18,554,210 |
|
|
| 13,642,987 |
|
|
| Long-term loans and advances |
| 551,354 |
|
|
| 534,786 |
|
|
| Long-term deposits and prepayments |
| 51,076 |
|
|
| 53,325 |
|
|
|
|
| 162,286,156 |
|
|
| 96,040,088 |
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
| |
| Stores, spares and consumables |
| 8,193,401 |
|
|
| 8,854,536 |
|
|
| Stock-in-trade |
| 18,299,229 |
|
|
| 12,088,621 |
|
|
| Trade debts |
| 4,508,468 |
|
|
| 5,142,591 |
|
|
| Loans and advances |
| 1,997,339 |
|
|
| 1,117,485 |
|
|
| Trade deposits and short-term prepayments |
| 2,092,112 |
|
|
| 1,108,185 |
|
|
| Other receivables |
| 6,935,242 |
|
|
| 3,431,926 |
|
|
| Tax refunds due from the Government |
| 538,812 |
|
|
| 538,812 |
|
|
| Taxation receivable |
| 2,687,513 |
|
|
| 2,221,851 |
|
|
| Accrued return |
| 156,948 |
|
|
| 161,742 |
|
|
| Short term investments |
| 1,055,754 |
|
|
| 34,956 |
|
|
| Cash and bank balances |
| 18,270,313 |
|
|
| 34,382,272 |
|
|
|
|
| 64,735,131 |
|
|
| 69,082,977 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
| 227,021,287 |
|
|
| 165,123,065 |
|
| |
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
| |
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Share capital |
| 3,233,750 |
|
|
| 3,233,750 |
|
|
| Reserves |
| 105,787,478 |
|
|
| 93,913,157 |
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to the owners of the Holding Company |
| 109,021,228 |
|
|
| 97,146,907 |
|
|
| Non-controlling interest |
| 16,249,228 |
|
|
| 12,428,264 |
|
|
| Total equity |
| 125,270,456 |
|
|
| 109,575,171 |
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| Long-term finance |
| 32,771,993 |
|
|
| 8,789,887 |
|
|
| Long-term deposits |
| 90,264 |
|
|
| 94,394 |
|
|
| Deferred liabilities |
| 11,431,338 |
|
|
| 10,640,736 |
|
|
| Other long term liabilities |
| 5,078,003 |
|
|
| 3,431,948 |
|
|
|
|
| 49,371,598 |
|
|
| 22,956,965 |
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
| |
| Current portion of long-term finance |
| 1,694,503 |
|
|
| 2,619,516 |
|
|
| Trade and other payables |
| 36,059,184 |
|
|
| 20,242,935 |
|
|
| Provision for taxation |
| 1,699,742 |
|
|
| 1,992,278 |
|
|
| Accrued return |
| 619,500 |
|
|
| 272,146 |
|
|
| Short-term borrowings and running finance |
| 12,161,232 |
|
|
| 7,332,327 |
|
|
| Current portion of liabilities against assets subject to finance lease |
| - |
|
|
| 822 |
|
|
| Unclaimed dividend |
| 53,953 |
|
|
| 47,945 |
|
|
| Unpaid dividend |
| 91,119 |
|
|
| 82,960 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 52,379,233 |
|
|
| 32,590,929 |
|
|
|
|
| 101,750,831 |
|
|
| 55,547,894 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
| 227,021,287 |
|
|
| 165,123,065 |
|
| |
|
|
| 2019 |
|
|
| 2018 |
|
|
|
| (PKR in '000) |
| ||||
|
|
|
|
|
|
|
|
|
Revenue |
| 136,591,742 |
|
|
| 124,681,831 |
| |
|
|
|
|
|
|
|
|
|
Less: | Sales tax and excise duty |
| 22,304,398 |
|
|
| 21,958,757 |
|
| Rebates and commission |
| 5,991,699 |
|
|
| 5,181,190 |
|
|
|
| 28,296,097 |
|
|
| 27,139,947 |
|
|
|
| 108,295,645 |
|
|
| 97,541,884 |
|
Cost of sales |
| (84,506,680) |
|
|
| (71,943,557) |
| |
|
|
|
|
|
|
|
|
|
Gross profit |
| 23,788,965 |
|
|
| 25,598,327 |
| |
|
|
|
|
|
|
|
|
|
Distribution cost |
| (5,855,390) |
|
|
| (4,736,174) |
| |
Administrative expenses |
| (3,274,843) |
|
|
| (2,586,556) |
| |
Finance cost |
| (1,609,882) |
|
|
| (829,919) |
| |
Other expenses |
| (1,903,511) |
|
|
| (2,204,275) |
| |
Other income |
| 2,999,637 |
|
|
| 2,766,520 |
| |
|
|
|
|
|
|
|
|
|
|
|
| 14,144,976 |
|
|
| 18,007,923 |
|
Share of profit - joint ventures and associates |
| 1,012,870 |
|
|
| 1,865,477 |
| |
|
|
|
|
|
|
|
|
|
Profit before taxation |
| 15,157,846 |
|
|
| 19,873,400 |
| |
|
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
| |
| - current |
| (2,234,744) |
|
|
| (3,160,980) |
|
| - deferred |
| (576,147) |
|
|
| (538,867) |
|
|
|
| (2,810,891) |
|
|
| (3,699,847) |
|
|
|
|
|
|
|
|
|
|
Profit after taxation |
| 12,346,955 |
|
|
| 16,173,553 |
| |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
| |
| Owners of the Holding Company |
| 11,327,770 |
|
|
| 14,819,911 |
|
| Non-controlling interest |
| 1,019,185 |
|
|
| 1,353,642 |
|
|
|
|
|
|
|
|
|
|
|
|
| 12,346,955 |
|
|
| 16,173,553 |
|
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Other comprehensive income / (loss) which will not be reclassified to |
|
|
|
|
| |||
profit or loss in subsequent periods: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Gain/(loss) on remeasurements of post retirement benefit obligations |
| 112,965 |
|
|
| (467,082) |
| |
Deferred tax thereon |
| (29,405) |
|
|
| 114,961 |
| |
|
|
| 83,560 |
|
|
| (352,121) |
|
|
|
|
|
|
|
|
|
|
Unrealised loss on remeasurement of equity instrument at fair |
| (11,947) |
|
|
| (10,496) |
| |
value through other comprehensive income |
| 1,792 |
|
|
| 1,574 |
| |
Deferred tax thereon |
| (10,155) |
|
|
| (8,922) |
| |
|
|
| 73,405 |
|
|
| (361,043) |
|
Other comprehensive income which may be reclassified to |
|
|
|
|
|
|
| |
profit or loss in subsequent periods: |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Foreign exchange differences on translation of foreign operations |
| 2,677,878 |
|
|
| 1,106,162 |
| |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
| 2,751,283 |
|
|
| 745,119 |
| |
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
| 15,098,238 |
|
|
| 16,918,672 |
| |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
| |
Owners of the Holding Company |
| 14,067,979 |
|
|
| 15,672,949 |
| |
Non-controlling interest |
| 1,030,259 |
|
|
| 1,245,723 |
| |
|
|
|
|
|
|
|
|
|
|
|
| 15,098,238 |
|
|
| 16,918,672 |
|
|
|
|
|
|
|
|
|
|
|
|
| (PKR) |
| ||||
|
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted |
| 35.03 |
|
|
| 45.83 |
| |
Directors' Report (Condensed)
The Directors have the pleasure in presenting to you the audited financial results of your Company which include both, stand-alone and consolidated financial statements for the fiscal year ended June 30, 2019.
Overview
The export performance of the Cement Industry has been exceptional during the the current financial year, which supported the overall Industry volumes to increase by 1.9% at 46.76 million tons for the fiscal year ended June 30, 2019 in comparison to 45.90 million tons last year. Export sales volumes registered an increase of 37.4% to reach 6.52 million tons as compared to 4.75 million tons last year and the local sales volume registered a decline of 2.2% to 40.24 million tons during the fiscal year ended June 30, 2019 in comparison to 41.15 million tons last year.
In comparison to the Cement Industry, your Company's overall sales volume declined by 1.8% to reach 7.67 million tons during the current fiscal year. The local cement sales volume registered a decline of 11.7% and were 5.85 million tons in comparison to 6.63 million tons last year, however the export sales volumes of the Company improved by 60.9% to 1.82 million tons as compared to 1.13 million tons last year.
On a consolidated basis, your Company achieved a gross turnover of PKR 136.59 billion which is 9.6% higher as compared to last year's turnover of PKR 124.68 billion.
Moreover, consolidated Net Profit of the Company was PKR 12.35 billion of which PKR 1.02 billion is attributable to non-controlling interests which translates into an EPS of PKR 35.03 during the fiscal year ended June 30, 2019 as compared to PKR 45.83 during last year.
Business Performance
a. Production & Sales Volume Performance - Standalone
The standalone production and sales statistics of your Company for the current fiscal year ended June 30, 2019 compared to last year are as follows:
Particulars | FY 2018-19 | FY 2017-18 | Growth / (Decline) |
| |||
| Tons in '000' | % | |
Clinker Production | 7,580 | 7,426 | 2.1% |
Cement Production | 6,835 | 7,655 | (10.7%) |
Cement Sales | 6,862 | 7,657 | (10.4%) |
Clinker Sales | 812 | 161 | 404.3% |
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 fiscal year ended 2018-19 in comparison with last year is presented below:
|
|
|
A comparative year-wise analysis of market share of your Company is as under:
b. Financial Performance - Standalone
The standalone financial performance of your Company for the fiscal year ended June 30, 2019 as compared to last year is presented below:
Revenue During the fiscal year 2018-19 under review, your Company achieved an overall gross sales revenue growth of 0.3% as compared to last year. This was mainly attributable to higher export sales volumes for clinker. |
Cost of Sales During the fiscal year 2018-19 under review, per ton cost of sales of your Company increased by 13.3% as compared to last year. This increase was mainly on account of adverse PKR exchange rate parity and market driven increases 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 29.1% for the fiscal year under review as compared to 35.7% reported last year. |
|
Net Profit
Your Company achieved a profit before tax of PKR 12,221.2 million during the current fiscal year under review as compared to PKR 15,118.7 million reported last year. Similarly, after tax profit of PKR 10,490.2 million was achieved during the current fiscal year under review as compared to PKR 12,197.1 million reported last year.
|
|
Earnings per share
The earnings per share of your Company for the fiscal year ended June 30, 2019 was PKR 32.44 in comparison to PKR 37.72 reported last year. |
|
Projects - New and Ongoing
Brownfield cement plant expansion in KPK Province of Pakistan - 2.6 million tons per annum
With the arrival of over 90% of plant and machinery shipments; the civil, erection and fabrication work at project site is in full swing and remains on target 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]
KLM commenced CKD operations within the originally envisaged project timelines. Its state-of- the-art facility has the capacity to produce 50,000 vehicles per annum on a double shift basis. The booking of "SPORTAGE" an SUV being KLM's first model started on 30th June 2019 and delivery thereof will start from the end of July 2019. The booking of "PICANTO" hatchback being KLM's second model is expected to start in August 2019 and delivery thereof from October 2019.
Greenfield clinker production facility in Samawah, Iraq - 1.2 million tons per annum
The first shipment of Plant and Machinery from Sinoma is expected to start from the month of October 2019. The letter of credit for Power Plant has been established and shipment from Wartsila is expected in the month of December 2019. Civil team has been mobilized and contract of mechanical work will be finalized in August 2019 and team will be mobilized accordingly. Target to achieve commercial production is by the end of first quarter of financial year 2020-21.
Corporate Social Responsibility
Your Company has a proven history and track record of its strong commitment for the improvement of society and the communities in which it operates. The primary focus of CSR initiatives of your Company remains in the education sector, women empowerment, health, environment conservation and community development.
Education / Scholarships
Continuing with its long-term vision to provide merit-based support for the deserving and less privileged segments of the society, your Company continued to extend a number of scholarships to various students of leading universities in Pakistan and abroad.
Women Empowerment
Your Company's focus on women empowerment through education has strengthened its collaboration with Zindagi Trust by supporting the two leading Government girls' schools in Karachi. These schools have been transformed into model girls' educational institutions in Pakistan.
Health Initiatives
The provision of quality healthcare for the society at large, has always remained your Company's priority, especially through the financial support of 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. Tabba Heart has achieved a trend-setting image in the field of cardiac healthcare by setting-up one of a kind preventive cardiology and rehabilitation department. Tabba Kidney, on the other hand has grown into the largest hemodialysis centre of Pakistan, providing complete medical care and surgical support in pediatric and adult urology.
Moreover, in the current financial year, your Company also provided financial support to Shaukat Khanum Memorial Cancer Hospital, Pakistan Welfare Association of the Blind and World Memon Organization.
Environment Conservation
Your Company always takes serious responsibility towards the conservation of Environment 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. Furthermore, in an effort to highlight the importance of sustainability amongst the employees, your Company also extended the tree plantation drive by distributing free saplings to its employees to further encourage and promote the importance of green environment for the employees and their families.
Community Development Programs
Your company believes in the importance of giving back to the community and therefore, continues to make efforts to uplift the underprivileged communities and for this cause your Company recently installed five solar energy based tube wells at various targeted locations near its Cement plant in the north at Jhang Khel, Wazir Kala, Shehbaz Khel, Tabi Murad and Azghar Khel, where earlier, only limited facilities for drinking water were available.
Outlook
With the current economic challenges and the post IMF (fund facility arrangements' signing) macro-economic situation, your Company believes that in short to medium-term, the Outlook of the Cement industry will continue to remain challenging for the domestic sales. Export sales are anticipated to remain stable, however, prices will come under pressure due to regional competition.
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 strong financial position and free cash flow generating ability is anticipated to further support its Vision to improve operational efficiencies as well as make new investments, which can bring in further improvement in efficiencies and enhance shareholders' value.
Dividend & Appropriation
Taking into consideration the current capital and equity investment plans; the board has proposed the final cash dividend of PKR 6.50 per share subject to the approval of shareholders in the upcoming Annual General Meeting scheduled to be held on September 27, 2019.
This approach remains in line with your Company's commitment to consistently provide sustainable returns to the shareholders. Movement in un-appropriated profit is as follows:
|
| PKR in '000 |
|
| Net Profit for the Year |
|
|
| Un-appropriated profit at the beginning of the year | -
|
|
| Profit available for appropriation | 10,538,595 |
|
|
| 10,538,595 |
|
| Appropriations |
|
|
| Proposed final cash dividend @ PKR 6.50 per share | 2,101,938 |
|
| Proposed transfer to General Reserves | 8,436,657 |
|
| Un-appropriated profit at the end of the year | -
|
|
| Basic and diluted earnings per share - PKR | 32.44 40.03 |
|
|
|
|
|
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: July 27, 2019
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/0467H_1-2019-7-29.pdf