Lucky Cement’s Profits Soar on Dividend Boost

Karachi: Lucky Cement Ltd. has reported a striking surge in its third-quarter financial performance, with standalone earnings reaching PkR13.5 billion, a substantial increase from PkR4.9 billion in the same period last year. This rise, attributed primarily to unexpected dividends from subsidiary companies, surpassed market expectations.

The company’s consolidated profits saw a 15% year-over-year rise, totaling PkR17.9 billion. The enhanced profitability was primarily driven by the improved performance of Lucky Motor Corporation, according to the latest financial results.

Lucky Cement’s standalone revenue was reported at PkR30.2 billion, reflecting a 10% increase from PkR27.5 billion in the same quarter last year. This growth was largely due to a 45% rise in export volumes, reaching 0.74 million tons.

Gross margins for the company improved to 33.2%, up from 28.8% in the previous year. This improvement was supported by lower coal prices and a shift towards more affordable renewable energy sources.

Operating expenses rose by 9% to PkR2.7 billion, correlating with increased export activities. Meanwhile, other income saw a significant boost, multiplying by 3.8 times to PkR11.0 billion, driven by a substantial rise in dividend income.

The finance cost for the quarter declined by 26% to PkR287 million as a result of easing financing rates. Additionally, the effective tax rate decreased to 22%, thanks to non-taxable dividend income from wholly-owned subsidiary Lucky Electric Power Company Ltd.

AKD Securities Limited has adjusted its recommendation to ‘Neutral’ for Lucky Cement, citing a 93% surge in stock price year-to-date, and maintained a December 2025 target price of PkR393 per share, indicating a potential 12% increase.