The Bell about Construction and Materials – Elixir Securities Limited

[ 0 ] January 31, 2012 |

Karachi: LUCK: Lower freight cost prop up earnings during 2QFY12

According to Elixir Securities Limited,

 

Key Financials Outstanding shares:323mn
(PKR million) 2QFY11 2QFY12  YoY(%)  1HFY11 1HFY12  YoY(%)
Net Sales  6,444 7,878 22%  12,028  15,374   28%
Gross Profit 2,236  2,900   30%     3,968  5,815  47%
SG and A    1,227  940  -23% 1,974 1,982  0%
EBITDA 1,410  2,369  68%   2,768   4,643   68%
Other Charges   60   94  56%  119 183   54%
Finance cost 151  89 -41%   294  170   -42%
Net Income 734  1,512 106%  1,461 3,018 107%
EPS (PKR) 2.27  4.68   106%   4.52   9.34  107%
EBITDA/ton 997 1,656 66% 987  1,619 64%
Retention/ton  4,557  5,509  21%  4,287  5,362 25%
COGS/ton(less dep) 2,692  3,195 19% 2,596   3,052  18%
Dispatches  1.41  1.43     1%    2.81  2.87  2%
Source: Elixir Research, Company Accounts

 

Lower freight costs support margins

Average net retention prices realized by Lucky Cement (LUCK) during 2QFY12 stood at PKR5,509/ton, up 21% YoY, which would likely have been the result of rise in domestic prices as export prices remained weak during the quarter. 19% YoY rise in COGS/ton (excluding depreciation) to PKR3,195/ton partially offset retention price increase as Gross Profit/ton (ex. depreciation) stood at PKR2,314/ton, up 24% YoY.

EBITDA margins registered a healthy growth of 66% YoY during 2QFY12 to PKR1,656/ton due to lower distribution cost. Distribution cost fell 28% YoY to PKR573/ton likely due to lower share of CnF based export contracts.

Market share dropped by 1pp QoQ

Overall dispatches of LUCK increased by 1.1% YoY during 2QFY12 to 1.43mn tons, mainly driven by 3.1% YoY growth in local dispatches amid 1.8% YoY drop in exports. During 2QFY12, overall market share of LUCK decreased by 1.0pp QoQ to 18%, mainly due to 0.8pp drop in local market share. Export market share increased by a mere 0.2pp QoQ to 26.7%.

Category: Brokerage

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