Last checked at 31 Jul 2017 14:37
LCK/CS/FR2017/2017-18/ July 31, 2017
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, 2017
We have to inform you that the Board of Directors of our Company in their Meeting held on Monday, July 31, 2017 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 120%
(ii) Bonus Shares Nil
(iii) Right Shares Nil
(iv) Any other Entitlement / Corporate Action Nil
(v) Any other Price-Sensitive Information Nil
The financial results of the Company consisting of balance sheet, profit and loss account and condensed directors' report are attached.
The 24th Annual General Meeting (AGM) of the Company will be held on Monday, September 25, 2017 at 10:30 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 Monday, September 11, 2017 to Monday, September 25, 2017 (both days inclusive). Transfers received at our Share Registrar/Transfer Agent M/s. Central Depository Company of Pakistan Limited, CDC House, 99-B, Block 'B', S.M.C.H.S. Main Shahrah-e-Faisal, Karachi-74400 at the close of business on Saturday, September 9, 2017 will be treated in time for the purpose of above entitlement to the transferees.
We will be sending you 200 copies of printed accounts for distribution amongst the Trading Right Entitlement (TRE) Certificate Holders of the Exchange 21 days before the date of AGM.
Yours truly,
For: LUCKY CEMENT LIMITED
IRFAN CHAWALA
Director Finance / CFO
UNCONSOLIDATED BALANCE SHEET | |||||||||||
AS AT JUNE 30, 2017 | |||||||||||
|
|
|
|
|
| 2017 |
|
|
| 2016 |
|
|
|
|
|
|
| Rupees '000 |
| ||||
ASSETS |
|
|
|
|
|
|
|
|
| ||
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||
Fixed assets |
|
|
|
|
|
|
|
|
| ||
| Property, plant and equipment |
|
|
| 37,488,137 |
|
|
| 33,887,375 |
| |
| Intangible assets |
|
|
| 79,657 |
|
|
| 126,549 |
| |
|
|
|
|
|
| 37,567,794 |
|
|
| 34,013,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
|
|
| 13,313,520 |
|
|
| 12,422,020 |
| |
| Long-term loans and advances |
|
|
| 84,951 |
|
|
| 75,570 |
| |
| Long-term deposits |
|
|
| 3,175 |
|
|
| 3,175 |
| |
|
|
|
|
|
| 50,969,440 |
|
|
| 46,514,689 |
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
| ||
| Stores and spares |
|
|
| 5,894,079 |
|
|
| 5,993,969 |
| |
| Stock-in-trade |
|
|
| 2,509,273 |
|
|
| 1,588,469 |
| |
| Trade debts |
|
|
| 1,582,689 |
|
|
| 2,181,788 |
| |
| Loans and advances |
|
|
| 619,161 |
|
|
| 447,049 |
| |
| Trade deposits and short-term prepayments |
|
|
| 39,774 |
|
|
| 38,948 |
| |
| Accrued return |
|
|
| 165,289 |
|
|
| 125,984 |
| |
| Other receivables |
|
|
| 1,235,019 |
|
|
| 1,274,026 |
| |
| Tax refunds due from the Government |
|
|
| 538,812 |
|
|
| 538,812 |
| |
| Short term investments |
|
|
| 45,452 |
|
|
| 400,000 |
| |
| Cash and bank balances |
|
|
| 33,738,377 |
|
|
| 26,805,582 |
| |
|
|
|
|
|
| 46,367,925 |
|
|
| 39,394,627 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
| 97,337,365 |
|
|
| 85,909,316 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
|
| ||
| Share capital |
|
|
| 3,233,750 |
|
|
| 3,233,750 |
| |
| Reserves |
|
|
| 76,551,231 |
|
|
| 66,089,088 |
| |
|
|
|
|
|
| 79,784,981 |
|
|
| 69,322,838 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term deposits |
|
|
| 84,630 |
|
|
| 70,666 |
| |
| Deferred liabilities |
|
|
| 7,124,127 |
|
|
| 6,898,078 |
| |
|
|
|
|
|
| 7,208,757 |
|
|
| 6,968,744 |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| ||
| Trade and other payables |
|
|
| 9,269,882 |
|
|
| 8,550,760 |
| |
| Taxation - net |
|
|
| 1,073,745 |
|
|
| 1,066,974 |
| |
|
|
|
|
|
| 10,343,627 |
|
|
| 9,617,734 |
|
|
|
|
|
|
| 17,552,384 |
|
|
| 16,586,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
|
| 97,337,365 |
|
|
| 85,909,316 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
UNCONSOLIDATED PROFIT AND LOSS ACCOUNT | |||||||||||
FOR THE YEAR ENDED JUNE 30, 2017 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2017 |
|
|
| 2016 |
|
|
|
|
|
|
| Rupees '000 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
Gross sales |
|
|
| 61,601,934 |
|
|
| 55,923,115 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Less: | Sales tax and federal excise duty |
|
| 15,227,058 |
|
|
| 10,086,623 |
| ||
| Rebates and commission |
|
| 687,833 |
|
|
| 701,455 |
| ||
|
|
|
|
|
| 15,914,891 |
|
|
| 10,788,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
|
|
| 45,687,043 |
|
|
| 45,135,037 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
| (24,388,760) |
|
|
| (23,389,268) |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
| 21,298,283 |
|
|
| 21,745,769 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Distribution cost |
|
| (1,703,785) |
|
|
| (2,018,376) |
| |||
Administrative expenses |
|
| (1,021,694) |
|
|
| (1,107,527) |
| |||
Other expenses |
|
|
| (1,788,023) |
|
|
| (1,640,105) |
| ||
Other income |
|
|
| 1,993,472 |
|
|
| 1,420,461 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation |
|
| 18,778,253 |
|
|
| 18,400,222 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
|
|
|
| |
- current |
|
|
|
| (5,032,196) |
|
|
| (5,015,844) |
| |
- deferred |
|
|
| (53,808) |
|
|
| (440,193) |
| ||
|
|
|
|
|
| (5,086,004) |
|
|
| (5,456,037) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation |
|
| 13,692,249 |
|
|
| 12,944,185 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income which will not be reclassified to |
|
|
|
|
|
|
| ||||
profit and loss account in subsequent periods |
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| Gain on remeasurements of post retirement |
|
|
|
|
|
|
|
| ||
| benefit obligation |
|
|
|
|
|
|
|
| ||
|
|
| 9,488 |
|
|
| 40,508 |
| |||
| Deferred tax thereon |
|
| (2,354) |
|
|
| (10,250) |
| ||
|
|
|
|
|
| 7,134 |
|
|
| 30,258 |
|
Other comprehensive income / (loss) which may be reclassified to |
|
|
|
|
|
|
| ||||
profit and loss account in subsequent periods |
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized loss on remeasurement of availabe for sale investment |
| (4,106) |
|
|
| - |
| |||
| Deferred tax thereon |
|
| 616 |
|
|
| - |
| ||
|
|
|
|
|
| (3,490) |
|
|
| - |
|
|
|
|
|
|
| 3,644 |
|
|
|
30,258 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
| 13,695,893 |
|
|
| 12,974,443 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Rupees) |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted |
|
| 42.34 |
|
|
|
40.03 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED BALANCE SHEET | ||||||||||||
AS AT JUNE 30, 2017 | ||||||||||||
|
|
|
|
|
| 2017 |
|
|
| 2016 |
|
|
|
|
|
|
|
| (Rupees in '000) |
|
| ||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
| |
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
| |||
| Fixed assets |
|
|
|
|
|
|
|
|
|
| |
| Property, plant and equipment |
|
| 59,601,233 |
|
|
| 52,357,646 |
|
| ||
| Intangible assets |
|
| 7,388,387 |
|
|
| 7,022,261 |
|
| ||
|
|
|
|
|
| 66,989,620 |
|
|
| 59,379,907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
|
| 11,098,870 |
|
|
| 10,654,528 |
|
| ||
| Long-term loans and advances |
|
| 467,373 |
|
|
| 433,207 |
|
| ||
| Long-term deposits and prepayments |
|
| 44,972 |
|
|
| 39,939 |
|
| ||
|
|
|
|
|
| 78,600,835 |
|
|
| 70,507,581 |
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
| |||
| Stores, spares and consumables |
|
| 7,041,171 |
|
|
| 7,016,458 |
|
| ||
| Stock-in-trade |
|
|
| 8,423,173 |
|
|
| 6,905,826 |
|
| |
| Trade debts |
|
|
| 4,172,567 |
|
|
| 3,821,855 |
|
| |
| Loans and advances |
|
| 1,061,146 |
|
|
| 852,484 |
|
| ||
| Trade deposits and short-term prepayments |
|
| 675,814 |
|
|
| 472,379 |
|
| ||
| Other receivables |
|
| 2,881,844 |
|
|
| 2,098,339 |
|
| ||
| Tax refunds due from the Government |
|
| 538,812 |
|
|
| 538,812 |
|
| ||
| Taxation - receivable |
|
| 1,093,972 |
|
|
| 2,219,273 |
|
| ||
| Accrued return |
|
|
| 181,355 |
|
|
| 126,286 |
|
| |
| Short term investments |
|
| 45,452 |
|
|
| 400,000 |
|
| ||
| Cash and bank balances |
|
| 36,273,319 |
|
|
| 28,448,471 |
|
| ||
|
|
|
|
|
| 62,388,625 |
|
|
| 52,900,183 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
|
|
| 140,989,460 |
|
|
| 123,407,764 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
| |||
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Share capital |
|
|
| 3,233,750 |
|
|
| 3,233,750 |
|
| |
| Reserves |
|
|
|
| 83,736,475 |
|
|
| 70,337,188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to the owners of the Holding Company |
|
| 86,970,225 |
|
|
|
73,570,938 |
|
| ||
| Non-controlling interests |
|
| 9,235,325 |
|
|
| 7,888,373 |
|
| ||
| Total equity |
|
|
| 96,205,550 |
|
|
| 81,459,311 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term finance |
|
| 8,825,140 |
|
|
| 8,741,955 |
|
| ||
| Long-term deposits |
|
| 84,630 |
|
|
| 70,666 |
|
| ||
| Liabilities against assets subject to finance lease |
|
| 798 |
|
|
| - |
|
| ||
| Deferred liabilities |
|
| 9,864,932 |
|
|
| 9,916,313 |
|
| ||
| Other long term liabilities |
|
| 2,752,510 |
|
|
| 2,541,166 |
|
| ||
|
|
|
|
|
| 21,528,010 |
|
|
| 21,270,100 |
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| |||
| Trade and other payables |
|
| 19,225,920 |
|
|
| 15,978,691 |
|
| ||
| Provision for Taxation |
|
| 1,073,745 |
|
|
| 1,066,974 |
|
| ||
| Accrued return |
|
|
| 177,654 |
|
|
| 146,321 |
|
| |
| Short-term borrowings and running finance |
|
| 2,128,905 |
|
|
| 1,937,184 |
|
| ||
| Current portion of liabilities against assets subject to finance lease |
|
| 2,009 |
|
|
| - |
|
| ||
| Current portion of long-term finance |
|
| 647,667 |
|
|
| 1,549,183 |
|
| ||
|
|
|
|
|
| 23,255,900 |
|
|
| 20,678,353 |
|
|
|
|
|
|
|
| 44,783,910 |
|
|
| 41,948,453 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
| 140,989,460 |
|
|
| 123,407,764 |
|
| |||
CONSOLIDATED PROFIT AND LOSS ACCOUNT | |||||||||||||
FOR THE YEAR ENDED JUNE 30, 2017 | |||||||||||||
|
|
|
|
|
|
| 2017 |
|
|
| 2016 |
|
|
|
|
|
|
|
|
| (Rupees in '000) |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Turnover |
|
|
|
|
| 109,800,227 |
|
|
| 98,651,896 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: | Sales tax and excise duty |
|
|
| 17,959,806 |
|
|
| 13,098,661 |
|
| ||
| Rebates and commission |
|
|
| 4,457,896 |
|
|
| 3,490,485 |
|
| ||
|
|
|
|
|
|
| 22,417,702 |
|
|
| 16,589,146 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 87,382,525 |
|
|
| 82,062,750 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of turnover |
|
|
|
| (58,445,580) |
|
|
| (54,214,956) |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
|
| 28,936,945 |
|
|
| 27,847,794 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution cost |
|
|
|
| (4,138,496) |
|
|
| (3,898,109) |
|
| ||
Administrative expenses |
|
|
| (2,237,067) |
|
|
| (2,089,619) |
|
| |||
Finance cost |
|
|
|
| (682,173) |
|
|
| (762,222) |
|
| ||
Other expenses |
|
|
|
| (1,899,264) |
|
|
| (1,926,061) |
|
| ||
Other income |
|
|
|
| 2,068,157 |
|
|
| 1,478,074 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 22,048,102 |
|
|
| 20,649,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share of profit in equity-accounted investments |
|
|
| 1,582,119 |
|
|
| 1,179,966 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation |
|
|
| 23,630,221 |
|
|
| 21,829,823 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
|
|
|
|
|
| |
| current |
|
|
|
| (6,475,246) |
|
|
| (5,484,877) |
|
| |
| deferred |
|
|
| 235,659 |
|
|
| (353,917) |
|
| ||
Taxation |
|
|
|
|
| (6,239,587) |
|
|
| (5,838,794) |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation |
|
|
| 17,390,634 |
|
|
| 15,991,029 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
| |||
| Owners of the Holding Company |
|
|
| 16,227,033 |
|
|
| 14,872,560 |
|
| ||
| Non-controlling interests |
|
|
| 1,163,601 |
|
|
| 1,118,469 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 17,390,634 |
|
|
| 15,991,029 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items not to be reclassified to profit and loss account |
|
|
|
|
|
|
|
|
|
| |||
in subsequent periods: |
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain / (loss) on remeasurements of post retirement benefit obligations |
|
|
| (64,663) |
|
|
| 22,478 |
|
| |||
Deferred tax thereon |
|
|
| 15,873 |
|
|
| (6,180) |
|
| |||
|
|
|
|
|
|
| (48,790) |
|
|
| 16,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items to be reclassified to profit and loss account |
|
|
|
|
|
|
|
|
|
| |||
in subsequent periods : |
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange differences on translation of foreign operations |
|
|
| 1,385 |
|
|
| 148,867 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealised loss on remeasurement of available-for-sale investment |
|
|
| (4,106) |
|
|
| - |
|
| |||
Deferred tax thereon |
|
|
| 616 |
|
|
| - |
|
| |||
|
|
|
|
|
|
| (3,490) |
|
|
| - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on hedge during the period |
|
|
| - |
|
|
| (2,285) |
|
| |||
Income tax relating to hedging reserve |
|
|
| - |
|
|
| 731 |
|
| |||
|
|
|
|
|
|
| - |
|
|
| (1,554) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments for amounts transferred to initial carrying amounts of hedged item - capital work-in-progress |
|
|
|
|
|
|
|
|
| ||||
|
| - |
|
|
| 1,554 |
|
| |||||
|
|
|
|
|
|
| (50,895) |
|
|
| 165,165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
|
|
| 17,339,739 |
|
|
| 16,156,194 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
| |||
Owners of the Holding Company |
|
|
| 16,200,957 |
|
|
| 15,043,863 |
|
| |||
Non-controlling interests |
|
|
| 1,138,782 |
|
|
| 1,112,331 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 17,339,739 |
|
|
| 16,156,194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (Rupees) |
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic and diluted |
|
|
| 50.18 |
|
|
| 45.99 |
|
| |||
Directors' Report (Condensed
The Directors of your Company have the pleasure in presenting to you the financial results of your Company which include both, stand-alone and consolidated audited financial statements for the fiscal year ended June 30, 2017.
Overview
Cement industry in Pakistan grew by 3.7% to 40.32 million tons during the fiscal year ended June 30, 2017 compared to 38.87 million tons last year. While local sales volume registered a growth of 8.0% to 35.65 million tons during the fiscal year compared to 33.00 million tons last year; export sales volume registered a decline of 20.6% to 4.66 million tons during the year under review compared to 5.87 million tons last year.
Your Company achieved an overall growth of 3.1% with total sales volume of 7.15 million tons during the fiscal year 2016-17 compared to 6.93 million tons last year. While local sales volume of your Company registered a growth of 13.9% to 6.07 million tons during the current fiscal year compared to 5.33 million tons last year; export sales volume declined by 32.7% to 1.08 million tons during the fiscal year 2016-17 compared to 1.61 million tons last year.
The EPS for the fiscal year ended June 30, 2017 was recorded at PKR 42.34 which is 5.8% higher than last year's EPS of PKR 40.03.
Business Performance
a. Production & Sales Volume Performance
The production and sales statistics of your Company for the fiscal year 2016-17 compared to last year are as follows:
|
|
|
|
| |||
|
|
| |
Clinker Production | 6,873 | 6,608 | 4.0% |
Cement Production | 6,881 | 6,908 | (0.4%) |
Cement Sales | 6,853 | 6,934 | (1.2%) |
Clinker Sales | 297 | - | 100.0% |
The production and sales volume data is graphically presented as under:
A comparison of the dispatches of the industry and your Company for the fiscal year ended 2016-17 with last year is presented below:
|
|
|
|
|
| ||
|
|
|
| ||||
|
|
|
|
|
|
|
|
Cement Industry |
|
|
|
|
|
|
|
Local Sales | 35,652 |
| 33,000 |
| 2,652 |
| 8.0% |
Export Sales |
|
|
|
|
|
|
|
- Bagged | 4,479 |
| 5,728 |
| (1,249) |
| (21.8%) |
- Loose | 185 |
| 145 |
| 40 |
| 27.6% |
Total Exports | 4,664 |
| 5,873 |
| (1,209) |
| (20.6%) |
Grand Total | 40,316 |
| 38,873 |
| 1,443 |
| 3.7% |
Lucky Cement |
|
|
|
|
|
|
|
Local Sales |
|
|
|
|
|
|
|
- Cement | 5,772 |
| 5,327 |
| 445 |
| 8.4% |
- Clinker | 297 |
| - |
| 297 |
| 100.0% |
Total Local Sales | 6,069 |
| 5,327 |
| 742 |
| 13.9% |
Export Sales |
|
|
|
|
|
|
|
- Bagged | 896 |
| 1,462 |
| (566) |
| (38.7%) |
- Loose | 185 |
| 145 |
| 40 |
| 27.6% |
Total Exports | 1,081 |
| 1,607 |
| (526) |
| (32.7%) |
Grand Total | 7,150 |
| 6,934 |
| 216 |
| 3.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Local Sales | 17.0% |
| 16.1% |
| 5.6% |
|
|
Export Sales |
|
|
|
|
|
|
|
- Bagged | 20.0% |
| 25.5% |
| (21.6%) |
|
|
- Loose | 100.0% |
| 100.0% |
| - |
|
|
Total Export | 23.2% |
| 27.4% |
| (15.3%) |
|
|
Grand Total | 17.7% |
| 17.8% |
| (0.6%) |
|
|
A comparative year-wise analysis of market share of your company is as under:
a. Financial Performance
The financial performance of your Company for fiscal year 2016-17 compared to last year is presented below:
|
Revenue During the fiscal year under review, your Company achieved an overall net sales revenue growth of 1.2% compared to last year. This was mainly attributable to increase in sales volumes. |
Cost of Sales During the fiscal year under review, per ton cost of sales of your Company increased by 1.0% compared to last year. The increase was mainly attributable to increase in coal prices. | |
Distribution of Gross Revenue |
Distribution of Cost of Sales | |
|
| |
Gross Profit Your Company achieved gross profit margin of 46.6% for the year under review compared to 48.2% reported last year. |
| |
Net Profit Your Company achieved profit before tax of PKR 18,778 million during the year under review compared to PKR 18,400 million reported last year. Similarly, after tax profit of PKR 13,692 million was achieved during the year under review compared to PKR 12,944 million reported last year. |
| |
Earnings per share The earnings per share of your Company for the year ended June 30, 2017 was PKR 42.34 compared to PKR 40.03 reported last year.
|
| |
Projects - New and Ongoing
Brownfield Expansion [Installation of additional Line of 1.25 million tons per annum] at Karachi Plant
The construction work at project site is in full swing to achieve commercial operations in December 2017.
Fully integrated green field Cement Plant in Punjab Province of Pakistan - 2.3 million tons per annum
Your Company is still in the process of seeking approvals and necessary authorizations from the Government of Punjab for commencement of this project.
Investments
Investment in 1 x 660 MW, supercritical, coal based power project
Your company has already executed EPC contract and also finalized draft of the Power Purchase Agreement and Implementation Agreement and also received intimation for coal allocation from Sindh Engro Coal Mining Company (SECMC); however, the implementation is delayed due to limits being imposed by the power purchaser for the use of imported coal beyond a restrictive timeline, even in the contingent event of non-availability of local (Thar) coal by that time. The target to achieve financial close is December 2017 and start of commercial operations by December 2020.
The consolidated audited financial statements of the Company for the year ended June 30, 2017, include the net assets of the above project company i.e. Lucky Electric Power Company Limited which is 100% indirectly owned subsidiary of the Company.
Investment in automotive Manufacturing plant - Kia Lucky Motors Pakistan Limited [KLM]
KLM was awarded category 'A' greenfield investment status in June 2017 by the Ministry of Industries and Production and was the first company to get such status under Automotive Development Policy 2016 - 2021. The target to start plant construction is for second quarter of the financial year 2017-18.
Brown field expansion in Cement Grinding unit in Republic of Iraq - 0.871 million tons per annum
Capacity expansion of the first 50% [i.e. 0.4355 million tons] in Iraq grinding unit is expected to come online by October 2017, whereas, the remaining 50% of the capacity expansion [i.e. 0.4355 million tons] is expected to come online by the end of November 2017.
Corporate Social Responsibility
Your Company remains committed towards value-creation for the society in which it operates. Therefore, as practiced in the past, your Company continued its services in the education sector by offering scholarships to deserving students in leading universities of the country. Your Company remains fully committed for the cause of women empowerment in the country and continued its support for the two leading Government girls' schools in Karachi in collaboration with Zindagi Trust. With the primary focus of social intervention in the development of women education in the Country, your Company hopes that its support for these schools can transform them into model educational institutions for the girls of Pakistan. On the other hand, support for The Hub School's maintenance by your Company continued during the current year, as well.
During the holy month of Ramadan, your Company show-cased the true spirit of charity by providing for basic food needs for many deserving families. Furthermore, your Company generously contributed towards various causes to support Eid related festivities. Your Company also continues to donate towards the cause of community development by supporting CPLC - an institution responsible for the safety and security of citizens in Sindh.
Outlook
Your Company continues to remain optimistic about domestic sales volumetric growth for the upcoming financial year. Domestic sales are expected to remain strong on the back of private and public sector construction projects as well as mega infrastructure development projects under the China-Pakistan Economic Corridor (CPEC) initiative. Your Company's strong and debt-free financial position and free cash flow generating ability would continue to support
investments in projects and avenues which can bring in further operational efficiencies and enhance shareholders' value.
Dividend & Appropriation
Taking into account the current capital and equity investment plans; the board has proposed the final dividend of PKR 12/- per share for the financial year ended June 30, 2017.
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 | 13,695,893 |
|
|
| 13,695,893 |
|
| Appropriations |
|
|
| Proposed dividend for the Financial Year 2016-17 @ PKR 12/- | (3,880,500) |
|
| Proposed transfer to General Reserves | (9,815,393) |
|
| Un-appropriated profit at the end of the year | -
|
|
| Basic and diluted earnings per share - PKR | 42.34 |
|
|
|
|
|
Acknowledgement
Your directors take this opportunity to express their deep sense of gratitude to all the stakeholders for their encouragement and support.
We would like to place on record our sincere appreciation for the commitment, dedication and hard work put in by every member of the Lucky family.
And also our shareholders, who have always shown their confidence and faith in the Company.
On behalf of the Board
MUHAMMAD YUNUS TABBA
Chairman / Director
Karachi: July 31, 2017
Click on, or paste the following link into your web browser, to view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/6046M_1-2017-7-31.pdf