Last checked at 30 Jan 2020 08:04
LCK/CS/2019-20/ January 29, 2020
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 HALF YEAR ENDED DECEMBER 31, 2019
This is to inform you that the Board of Directors of our Company in their meeting held on Wednesday, January 29, 2020 at 4:30 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 Half Yearly report of the Company for the period ended December 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 December 31, 2019 |
| |||||||||
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|
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|
|
|
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|
|
|
|
| (Un-audited) |
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| (Audited) |
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|
|
|
|
| December 31, |
|
|
| June 30, |
|
|
|
|
|
| 2019 |
|
|
| 2019 |
|
|
|
|
|
| (PKR in '000') |
| ||||
ASSETS |
|
|
|
|
|
|
| |||
NON-CURRENT ASSETS |
|
|
|
|
|
|
| |||
| Fixed assets |
|
|
|
|
|
|
| ||
| Property, plant and equipment |
| 62,157,703 |
|
|
| 57,276,184 |
| ||
| Intangible assets |
| 13,245 |
|
|
| 18,152 |
| ||
|
|
|
|
| 62,170,948 |
|
|
| 57,294,336 |
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
| 36,618,587 |
|
|
| 34,313,588 |
| ||
| Long-term loans and advances |
| 90,628 |
|
|
| 99,316 |
| ||
| Long-term deposits |
| 3,175 |
|
|
| 3,175 |
| ||
|
|
|
|
| 98,883,338 |
|
|
| 91,710,415 |
|
CURRENT ASSETS |
|
|
|
|
|
|
| |||
| Stores and spares |
| 7,661,615 |
|
|
| 6,809,724 |
| ||
| Stock-in-trade |
| 2,365,661 |
|
|
| 4,253,020 |
| ||
| Trade debts |
| 3,079,131 |
|
|
| 2,058,719 |
| ||
| Loans and advances |
| 589,643 |
|
|
| 686,525 |
| ||
| Trade deposits and short term prepayments |
| 83,985 |
|
|
| 74,223 |
| ||
| Accrued return |
| 93,715 |
|
|
| 113,869 |
| ||
| Other receivables |
| 2,116,939 |
|
|
| 2,130,907 |
| ||
| Tax refunds due from the Government |
| 538,812 |
|
|
| 538,812 |
| ||
| Short term investments |
| 409,394 |
|
|
| 1,055,754 |
| ||
| Cash and bank balances |
| 12,852,797 |
|
|
| 15,657,246 |
| ||
|
|
|
|
| 29,791,692 |
|
|
| 33,378,799 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS |
| 128,675,030 |
|
|
| 125,089,214 |
| |||
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
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| |||
SHARE CAPITAL AND RESERVES |
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| |||
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|
|
|
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|
|
|
|
|
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|
|
|
|
|
|
|
|
|
Share Capital |
| 3,233,750 |
|
|
| 3,233,750 |
| |||
Reserves |
| 90,918,523 |
|
|
| 91,084,667 |
| |||
|
|
|
|
| 94,152,273 |
|
|
| 94,318,417 |
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
| Long-term deposits |
| 232,442 |
|
|
| 90,264 |
| ||
| Deferred liabilities |
| 7,184,313 |
|
|
| 7,102,483 |
| ||
|
|
|
|
| 7,416,755 |
|
|
| 7,192,747 |
|
CURRENT LIABILITIES |
|
|
|
|
|
|
| |||
| Trade and other payables |
| 20,348,244 |
|
|
| 19,195,617 |
| ||
| Short term borrowing |
| 5,218,628 |
|
|
| 2,900,000 |
| ||
| Unclaimed dividend |
| 57,574 |
|
|
| 53,953 |
| ||
| Unpaid dividend |
| 23,897 |
|
|
| 91,119 |
| ||
| Taxation - net |
| 1,457,659 |
|
|
| 1,337,361 |
| ||
|
|
|
|
| 27,106,002 |
|
|
| 23,578,050 |
|
|
|
|
|
| 34,522,757 |
|
|
| 30,770,797 |
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
| 128,675,030 |
|
|
| 125,089,214 |
| |||
|
|
|
|
|
|
|
|
|
|
|
Unconsolidated Condensed Interim Statement of Profit or Loss and Other Comprehensive Income | ||||||||||||
For the half year ended December 31, 2019 (Un-audited) | ||||||||||||
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| |
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| Half Year Ended |
| Quarter Ended | |||||
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|
|
|
| December 31, 2019 |
| December 31, 2018 |
| December 31, 2019 |
| December 31, 2018 | |
|
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|
|
| (PKR in'000') |
| (PKR in '000') | |||||
|
|
|
|
|
|
|
|
|
|
|
| |
Gross sales |
|
| 31,095,561 |
| 34,885,341 |
| 17,165,579 |
| 18,874,278 | |||
|
|
|
|
|
|
|
|
|
|
|
| |
| Less:Sales tax and federal excise duty |
| 9,360,807 |
| 9,484,395 |
| 5,277,187 |
| 5,093,783 | |||
| Rebates, incentives and commission |
| 523,374 |
| 445,871 |
| 305,988 |
| 230,488 | |||
|
|
|
|
| 9,884,181 |
| 9,930,266 |
| 5,583,175 |
| 5,324,271 | |
Net sales |
|
| 21,211,380 |
| 24,955,075 |
| 11,582,404 |
| 13,550,007 | |||
|
|
|
|
|
|
|
|
|
|
|
| |
Cost of sales |
|
| (17,987,142) |
| (17,531,060) |
| (9,849,995) |
| (9,550,411) | |||
|
|
|
|
|
|
|
|
|
|
|
| |
Gross profit |
|
| 3,224,238 |
| 7,424,015 |
| 1,732,409 |
| 3,999,596 | |||
|
|
|
|
|
|
|
|
|
|
|
| |
Distribution cost |
| (1,894,420) |
| (1,374,509) |
| (919,103) |
| (716,990) | ||||
Administrative expenses |
| (597,328) |
| (559,645) |
| (296,901) |
| (285,869) | ||||
Finance cost |
|
| (47,946) |
| - |
| (28,080) |
| - | |||
Other expenses |
| (194,311) |
| (570,602) |
| (89,774) |
| (325,146) | ||||
Other income |
|
| 1,709,031 |
| 1,606,571 |
| 778,800 |
| 962,242 | |||
|
|
|
|
|
|
|
|
|
|
|
| |
Profit before taxation |
| 2,199,264 |
| 6,525,830 |
| 1,177,351 |
| 3,633,833 | ||||
|
|
|
|
|
|
|
|
|
|
|
| |
Taxation |
|
|
|
|
|
|
|
|
|
| ||
| -current |
|
| (366,683) |
| (1,433,590) |
| (196,619) |
| (883,235) | ||
| -deferred |
| 103,995 |
| 408,549 |
| - |
| 257,360 | |||
|
|
|
|
| (262,688) |
| (1,025,041) |
| (196,619) |
| (625,875) | |
Profit after taxation |
| 1,936,576 |
| 5,500,789 |
| 980,732 |
| 3,007,958 | ||||
|
|
|
|
|
|
|
|
|
|
|
| |
Other comprehensive income: |
|
|
|
|
|
|
|
| ||||
|
|
|
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|
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|
|
|
|
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| |
Other comprehensive (loss) / income which will not be reclassified to profit | ||||||||||||
or loss in subsequent periods | ||||||||||||
| Unrealized (loss) / income on remeasurement of equity instrument at fair value through other comprehensive income | (920) |
| (10,938) |
| 7,169 |
| (4,602) | ||||
| Deferred tax thereon |
| 138 |
| 1,640 |
| (1,075) |
| 690 | |||
|
|
|
|
| (782) |
| (9,298) |
| 6,094 |
| (3,912) | |
|
|
|
|
|
|
|
|
|
|
|
| |
Total comprehensive income for the period |
| 1,935,794 |
| 5,491,491 |
| 986,826 |
| 3,004,046 | ||||
|
|
|
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|
|
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| |
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| (PKR) |
| (PKR) | |||||
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|
|
|
|
|
| |
Earnings per share - basic and diluted |
| 5.99 |
| 17.01 |
| 3.03 |
| 9.30 | ||||
|
|
|
|
|
|
|
|
|
|
|
| |
Condensed Interim Consolidated Sc tatement of Financial Position | ||||||||||||
As at December 31, 2019 | ||||||||||||
|
|
|
|
|
| (Un-audited) |
|
|
| (Audited) |
|
|
|
|
|
|
|
| December 31, 2019 |
|
|
| June 30, 2019 |
|
|
|
|
|
|
|
| (PKR in '000') |
|
| ||||
ASSETS |
|
|
|
|
|
|
|
|
|
| ||
NON-CURRENT ASSETS |
|
|
|
|
|
|
|
|
| |||
| Fixed assets |
|
|
|
|
|
|
|
|
|
| |
| Property, plant and equipment |
|
| 164,879,374 |
|
|
| 135,475,796 |
|
| ||
| Intangible assets |
|
| 7,486,605 |
|
|
| 7,653,720 |
|
| ||
| Right of use assets |
|
|
| 228,561 |
|
|
| - |
|
| |
|
|
|
|
|
| 172,594,540 |
|
|
| 143,129,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term investments |
|
| 19,917,591 |
|
|
| 18,554,210 |
|
| ||
| Long-term loans and advances |
|
| 621,983 |
|
|
| 551,354 |
|
| ||
| Long-term deposits and prepayments |
|
| 55,970 |
|
|
| 51,076 |
|
| ||
|
|
|
|
|
| 193,190,084 |
|
|
| 162,286,156 |
|
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
| ||
| Stores, spares and consumables |
|
| 9,306,360 |
|
|
| 8,193,401 |
|
| ||
| Stock-in-trade |
|
|
| 17,599,446 |
|
|
| 18,299,229 |
|
| |
| Trade debts |
|
|
| 5,490,109 |
|
|
| 4,508,468 |
|
| |
| Loans and advances |
|
|
| 2,251,820 |
|
|
| 1,997,339 |
|
| |
| Trade deposits and short-term prepayments |
|
| 1,953,161 |
|
|
| 2,092,112 |
|
| ||
| Other receivables |
|
|
| 6,706,253 |
|
|
| 6,935,242 |
|
| |
| Tax refunds due from the Government |
|
| 538,812 |
|
|
| 538,812 |
|
| ||
| Taxation receivable |
|
|
| 2,205,726 |
|
|
| 2,687,513 |
|
| |
| Accrued return |
|
|
| 109,736 |
|
|
| 156,948 |
|
| |
| Short term investments |
|
| 409,394 |
|
|
| 1,055,754 |
|
| ||
| Cash and bank balances |
|
| 16,075,095 |
|
|
| 18,270,313 |
|
| ||
|
|
|
|
|
| 62,645,912 |
|
|
| 64,735,131 |
|
|
TOTAL ASSETS |
|
|
| 255,835,996 |
|
|
| 227,021,287 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
| |||
SHARE CAPITAL AND RESERVES |
|
|
|
|
|
|
|
|
| |||
Share capital |
|
|
| 3,233,750 |
|
|
| 3,233,750 |
|
| ||
Reserves |
|
|
| 106,521,451 |
|
|
| 105,787,478 |
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Attributable to the owners of the Holding Company |
|
| 109,755,201 |
|
|
| 109,021,228 |
|
| ||
| Non-controlling interests |
|
| 17,659,350 |
|
|
| 16,249,228 |
|
| ||
| Total equity |
|
|
| 127,414,551 |
|
|
| 125,270,456 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term finances |
|
|
| 53,765,903 |
|
|
| 32,771,993 |
|
| |
| Long-term deposits |
|
|
| 232,442 |
|
|
| 90,264 |
|
| |
| Deferred liabilities |
|
|
| 11,382,802 |
|
|
| 11,431,338 |
|
| |
| Lease Liabilities |
|
|
| 178,655 |
|
|
| - |
|
| |
| Other long term liabilities |
|
| 4,912,880 |
|
|
| 5,078,003 |
|
| ||
|
|
|
|
|
| 70,472,682 |
|
|
| 49,371,598 |
|
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
| ||
| Current portion of long-term finances |
|
| 1,579,592 |
|
|
| 1,694,503 |
|
| ||
| Trade and other payables |
|
| 43,424,572 |
|
|
| 36,059,184 |
|
| ||
| Provision for taxation |
|
| 1,844,936 |
|
|
| 1,699,742 |
|
| ||
| Accrued return |
|
|
| 456,993 |
|
|
| 619,500 |
|
| |
| Short-term borrowings and running finance |
|
| 10,436,953 |
|
|
| 12,161,232 |
|
| ||
| Current portion of liabilities against assets subject to finance lease |
| 42,092 |
|
|
| - |
|
| |||
| Unclaimed dividend |
|
|
| 139,728 |
|
|
| 53,953 |
|
| |
| Unpaid dividend |
|
|
| 23,897 |
|
|
| 91,119 |
|
| |
|
|
|
|
|
| 57,948,763 |
|
|
| 52,379,233 |
|
|
|
|
|
|
|
| 128,421,445 |
|
|
| 101,750,831 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
| 255,835,996 |
|
|
| 227,021,287 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income |
| ||||||||||||
For the half year ended December 31, 2019 (Un-audited) |
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Half Year Ended |
| Quarter Ended |
| ||||
|
|
|
|
|
| December 31, 2019 |
| December 31, 2018 |
| December 31, 2019 |
| December 31, 2018 |
|
|
|
|
|
|
| (PKR in '000') |
| (PKR in '000') |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
| 79,558,047 |
| 67,854,061 |
| 45,128,401 |
| 36,538,607 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Sales tax and excise duty |
|
| 15,451,506 |
| 11,301,849 |
| 9,768,404 |
| 6,058,883 |
| |||
| Rebates, incentives and commission |
|
| 3,367,235 |
| 2,832,361 |
| 1,800,630 |
| 1,604,495 |
| ||
|
|
|
|
|
| 18,818,741 |
| 14,134,210 |
| 11,569,034 |
| 7,663,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 60,739,306 |
| 53,719,851 |
| 33,559,367 |
| 28,875,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
|
|
| (51,092,724) |
| (42,020,952) |
| (28,256,427) |
| (22,764,288) |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
| 9,646,582 |
| 11,698,899 |
| 5,302,940 |
| 6,110,941 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution cost |
|
|
| (3,749,366) |
| (2,837,830) |
| (1,902,621) |
| (1,454,128) |
| ||
Administrative expenses |
|
|
| (2,037,901) |
| (1,531,627) |
| (1,019,081) |
| (775,797) |
| ||
Finance cost |
|
|
| (1,185,524) |
| (774,333) |
| (560,521) |
| (417,120) |
| ||
Other expenses |
|
|
| (395,250) |
| (901,980) |
| (203,610) |
| (560,207) |
| ||
Other income |
|
|
| 2,792,289 |
| 1,923,716 |
| 1,406,594 |
| 770,974 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit before taxation |
|
|
| 5,070,830 |
| 7,576,845 |
| 3,023,701 |
| 3,674,663 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxation |
|
|
|
|
|
|
|
|
|
|
|
| |
| - current |
|
|
| (1,402,122) |
| (2,123,114) |
| (653,295) |
| (1,059,506) |
| |
| - deferred |
|
|
| 254,107 |
| 683,531 |
| 25,386 |
| 360,315 |
| |
|
|
|
|
|
| (1,148,015) |
| (1,439,583) |
| (627,909) |
| (699,191) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit after taxation |
|
|
| 3,922,815 |
| 6,137,262 |
| 2,395,792 |
| 2,975,472 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
| ||
Owners of the Holding Company |
|
| 3,212,118 |
| 5,795,505 |
| 1,939,939 |
| 2,839,705 |
| |||
Non-controlling interests |
|
|
| 710,697 |
| 341,757 |
| 455,853 |
| 135,767 |
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 3,922,815 |
| 6,137,262 |
| 2,395,792 |
| 2,975,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income for the period |
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (loss) / in-come which may be reclassified to statement of profit or |
|
|
|
|
|
|
|
| |||||
loss in subsequent periods |
|
|
|
|
|
|
|
|
|
| |||
| Foreign exchange differences on translation of foreign operations |
|
| (375,425) |
| 1,200,556 |
| (114,005) |
| 1,011,443 |
| ||
Other comprehensive (loss) / income which will not be reclassified to statement of |
|
|
|
|
|
|
|
| |||||
profit or loss in subsequent periods |
|
|
|
|
|
|
|
|
|
| |||
| Unrealized (loss)/gain on remeasurement of equity investment at fair value through other comprehensive income |
|
| (920) |
| (10,938) |
| 7,169 |
| (4,602) |
| ||
| Deferred tax thereon |
|
|
| 138 |
| 1,640 |
| (1,075) |
| 690 |
| |
|
|
|
|
|
| (782) |
| (9,298) |
| 6,094 |
| (3,912) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period |
| 3,546,608 |
| 7,328,520 |
| 2,287,881 |
| 3,983,003 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
| ||
Owners of the Holding Company |
|
| 2,835,911 |
| 6,986,763 |
| 1,832,028 |
| 3,847,236 |
| |||
Non-controlling interests |
|
|
| 710,697 |
| 341,757 |
| 455,853 |
| 135,767 |
| ||
|
|
|
|
|
| 3,546,608 |
| 7,328,520 |
| 2,287,881 |
| 3,983,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (PKR) |
| (PKR) |
| ||||
Earnings per share - basic and diluted |
|
| 9.93 |
| 17.92 |
| 6.00 |
| 8.78 |
| |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Directors' Report
The Directors have the pleasure in presenting to you the financial results of your Company which include both, stand-alone (duly reviewed by the auditors) and consolidated unaudited financial statements for the half year ended December 31, 2019.
Overview
Cement industry in Pakistan grew by 6.5% to 24.75 million tons during the half year ended December 31, 2019 in comparison to 23.23 million tons during the same period last year. Local sales volume registered a growth of 3.5% to 20.37 million tons during the current half year in comparison to 19.67 million tons during the same period last year. Export sales volumes registered an increase of 22.9% to 4.38 million tons during the half year under review as compared to 3.56 million tons reported in the same period last year.
In comparison to the Cement Industry, your Company's overall sales volumes declined by 8.4% to 3.68 million tons during the current half year ended December 31, 2019. The local sales volumes registered a decline of 13.3% and were 2.59 million tons in comparison to 2.99 million tons during the same period last year, however, the export sales volumes of the Company improved by 6.0% to 1.08 million tons as compared to 1.02 million tons during the same period last year.
On a consolidated basis, your Company achieved a gross turnover of PKR 79.56 billion which is 17.3% higher as compared to the same period last year's turnover of PKR 67.85 billion.
Moreover, consolidated Net Profit of the Company was PKR 3.92 billion of which PKR 0.71 billion is attributable to non-controlling interests which translates into an EPS of PKR 9.93 during the current half year ended December 31, 2019 as compared to PKR 17.92 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 half year ended December 31, 2019, compared to the same period last year are as follows:
Particulars | Half Year 2019-20
| Half Year 2018-19
| Growth/ (Decline)
|
| |||
| Tons in '000’ | % | |
Clinker Production | 2,948 | 3,742 | (21.2%) |
Cement Production | 3,177 | 3,458 | (8.1%) |
Cement Sales | 3,170 | 3,501 | (9.5%) |
Clinker Sales | 507 | 513 | (1.2%) |
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 half year ended December 31, 2019 compared with the same period last year is presented below:
b. Financial Performance - Standalone
The standalone financial performance of your Company for the half year ended December 31, 2019, as compared to the same period last year is presented below:
|
| |
Revenue During the half year of 2019-20 under review, your Company's overall gross sales revenue declined by 10.9% as compared to the same period last year. Where, although the export sales revenue showed an increase of 19.1% (PKR 6.43 billion vs PKR 5.40 billion) but the local sales revenue decline of 16.3% (PKR 24.67 billion vs PKR 29.49 billion) lead to the overall drop of 10.9% in the gross sales revenue.
This was mainly due to lower sales volumes and cut-throat pricing on the back of lower demand and retentions due to higher transportation and logistics costs. |
Cost of Sales Moreover, during the half year under review, per ton cost of sales of your Company increased by 12.0% as compared to the same period last year. The increase was mainly attributable to exceptional increase in gas and other fuel prices, higher fixed costs absorption (due to lower volumes) and higher transportation costs on input materials. | |
Gross Profit In view of the lower sales volumes & retentions and higher input costs, as mentioned above, Gross profit margins of the company for the half year under review were 15.2% as compared to 29.7% reported during the same period last year. |
|
Net Profit
Similarly, your Company achieved a profit before tax of PKR 2,199.3 million during the half year under review as compared to PKR 6,525.8 million reported during the same period last year.
Accordingly, after tax profit of PKR 1,936.6 million was achieved during the half year under review as compared to PKR 5,500.8 million reported during the same period last year.
|
|
Earnings per share
The earnings per share of your Company for the half year ended December 31, 2019 was PKR 5.99 in comparison to PKR 17.01 reported during the same period last year. |
|
Projects - New and Ongoing
Brownfield cement plant expansion in KPK Province of Pakistan - 2.8 million tons per annum.
Construction and installation after slight design modifications with respect to the additional line of 2.8 million tons per annum has been successfully completed as per the given project completion timelines. The new line was made operational with the commencement of Clinker production on December 30, 2019. The total production capacity (including both North and South plants) of the Company has now increased from previous 9.35 million tons to 12.15 million tons per annum.
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 in full swing with over 60% of project completion to-date. With the completion of major design / engineering works and the expected on-site arrival of all the critical equipment in the months of February and March, the commissioning team of SEPCO III is now fully mobilized at the Project site.
Target to achieve commercial operations is 1st March 2021.
Greenfield cement plant expansion in Samawah, Iraq - 1.2 million tons per annum
Fabrication and erection work is in full swing and Project timelines are being met. Necessary manpower and contractors have also been mobilized at the Site. The contract for Cement grinding mill, Packing plant and additional Power generator is also finalized and Letter of Credit has been established.
Target to achieve commercial production is by the second quarter of financial year 2020-21.
Corporate Social Responsibility
With the primary focus on Education, Women empowerment, Health and Environment conservation, your Company remains committed towards progressive development of society and the communities in which it operates.
Education / Scholarships
Your company continues to support the deserving and less privileged segments of the society through provision of merit-based scholarships to various students of IBA, IoBM and other leading universities in Pakistan and abroad.
Women Empowerment
Your Company's focus on women empowerment through education remains an ongoing process with the collaboration of Zindagi Trust by supporting two leading Government girls' schools in Karachi. These schools have been transformed into model girls' educational institutions in Pakistan.
Health Initiatives
The quality healthcare provision has always been 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.
Environment Conservation
Your Company always takes serious responsibility towards the preservation of the environment and in an effort to highlight the importance of environment conservation; your Company continued with its pro-environment initiatives including tree-plantation drives in and around its manufacturing sites.
Outlook
Despite current economic challenges, there has been an overall growth in both Domestic and Export off-takes.
The Outlook of the Cement industry will continue to be challenging due to availability of excess capacity in the North region, which will put adverse pressure on pricing. Whereas, prices for exports from South are also very competitive due to surplus supplies available in the Region. The input costs may also rise in the future, due to higher electricity and gas tariffs, which will increase the production, as well as logistics costs.
Acknowledgement
Directors of your Company take this opportunity to express sincere gratitude and appreciation for unrelenting commitment and contribution of its people and the trust and confidence 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: January 29, 2020
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