Lucky Cement’s Profits Soar on Higher Dividends and Improved Operations

KARACHI: Lucky Cement Ltd. (LUCK) announced a significant boost in its profitability for the first quarter of fiscal year 2026, with standalone earnings reaching PkR14.6 billion, or an earnings per share (EPS) of PkR10.0. This represents a dramatic increase from the PkR6.6 billion (EPS: PkR4.5) reported in the same period last year, a rise attributed to increased dividends from subsidiaries and associates.

On a consolidated basis, the company’s profitability rose by 23% year over year to PkR22.0 billion. This growth was primarily driven by the enhanced performance of its core cement operations.

Standalone revenue for the quarter was PkR33.9 billion, marking a 14% increase from PkR29.8 billion in the same period last year. This rise was largely due to an 11% increase in the company’s offtakes.

Gross margins improved significantly, reaching 39.2% compared to 32.9% in the same period last year. This improvement was supported by lower coal prices and a reduced power cost due to a greater reliance on low-cost renewable energy sources.

Operating expenses saw a slight decline of 5% year over year, totaling PkR2.8 billion compared to PkR2.9 billion last year. This decrease was mainly due to reduced export volumes.

Other income experienced a significant surge, increasing by 2.7 times year over year to PkR9.0 billion. This was largely driven by a 3.8 times increase in dividend income from subsidiaries and associates, which rose to PkR7.6 billion from PkR2.0 billion.

The financial results were reported by AKD Securities Limited, highlighting the strong performance and strategic gains achieved by Lucky Cement in the first quarter of the fiscal year.