Lucky Cement Posts 39% Profit Decline Due to Absence of Dividend Income

Karachi: Lucky Cement Ltd. reported a 39% year-over-year decline in its standalone earnings for the fourth quarter of fiscal year 2025, primarily due to the absence of dividend income from its subsidiary, LEPCL. Earnings for the quarter stood at PKR 5.7 billion, or PKR 3.9 per share, compared to PKR 9.5 billion, or PKR 6.5 per share, in the same period last year.

Despite the drop in earnings, the company’s revenue increased by 7% year-over-year to PKR 30.0 billion, driven by higher retention prices and a 3% increase in offtakes. Gross margins improved to 35.6% from 32.4% in the same period last year, aided by lower coal prices and reduced power costs due to a shift towards low-cost renewable energy sources.

Other income fell sharply by 73% year-over-year to PKR 2.0 billion, a decrease attributed to the absence of the LEPCL dividend, which contributed PKR 6 billion in the same quarter of the previous year. The company had received this dividend in the third quarter of fiscal year 2025, rather than in the fourth quarter as in the previous fiscal year.

The finance cost decreased by 33% year-over-year to PKR 257 million, largely due to a reduction in financing rates. The effective tax rate for the quarter increased to 36%, compared to 31% in the same period last year and 22% in the third quarter of fiscal year 2025, due to the lack of non-taxable dividend income from LEPCL.

For the full fiscal year 2025, Lucky Cement’s earnings rose by 18% year-over-year to PKR 33.1 billion, or PKR 22.6 per share, compared to PKR 28.1 billion, or PKR 19.2 per share, in the previous fiscal year. AKD Securities Limited maintained a ‘Neutral’ call on Lucky Cement’s stock, with a target price of PKR 393 per share by December 2025.