Lucky Cement Reports 34% Surge in Quarterly Earnings, Announces Dividend

Karachi: Lucky Cement Limited reported a 34 percent increase in its consolidated earnings for the fourth quarter of fiscal year 2025, reaching Rs19.69 billion with earnings per share (EPS) of Rs13.41. The company’s results met industry expectations, as outlined in its recent press release.

In conjunction with the earnings announcement, Lucky Cement declared an annual cash dividend of Rs4.0 per share for the fourth quarter, aligning with industry forecasts. The company’s net revenue for the period saw a 12 percent rise year-over-year and an 8 percent increase from the previous quarter, reaching Rs116.8 billion. This growth was attributed to higher revenue from its local cement operations and Lucky Motors, reflecting trends in the automotive industry.

The quarter’s net sales growth was driven by a 9 percent increase in domestic volumetric sales and a 6 percent rise in retention prices. However, the standalone profits of Lucky Cement fell by 39 percent year-over-year, with earnings per share declining to Rs3.92. This decline was largely due to a 73 percent reduction in other income, as the company had received a Rs6 billion dividend from Lucky Electric in the fourth quarter of fiscal year 2024.

In fiscal year 2025, Lucky Cement’s standalone gross margins improved to 35.6 percent from 32.4 percent the previous year. The company experienced a 26 percent increase in other income, mainly due to dividend income from subsidiaries, totaling Rs20.3 billion. Dividends from Lucky Core Industries, Lucky Electric, Lucky Motors, and Yunus Energy contributed significantly to this increase.

The company’s share of profit from associates rose by 10 percent to Rs17.78 billion. On the tax front, Lucky Cement recorded an effective tax rate of 30 percent for its standalone business, down from 32 percent in the previous fiscal year. The consolidated effective tax rate stood at 20 percent, compared to 21.5 percent in fiscal year 2024.

Lucky Cement also outlined plans for future investments, including equity investment of up to Rs1.2 billion in a mining business, installation of battery storage to optimize renewable power generation, and the addition of a 0.65 million-ton grinding line in Iraq, expected to be completed in the first half of fiscal year 2026.

The company maintained its BUY stance, noting that it is trading at an estimated price-to-earnings ratio of 6.1 for fiscal year 2026 and 5.4 for fiscal year 2027.