Source - RNS
RNS Number : 7266I
Lucky Cement Limited
01 September 2016
 

LCK/CS/FR2016/2016-17/                                                      1st September 2016

 

 

 

The General Manager

Pakistan Stock Exchange

Limited

Karachi

The Deputy Chief

Securities & Exchange

Commission of Pakistan

Islamabad

The London Stock Exchange

10 Paternoster

Square,

London

 

 

Dear Sir(s)

 

Financial Result for the year ended 30th June 2016

 

We have to inform you that the Board of Directors of our Company in their Meeting held on Thursday, 1st September 2016 at 11:30 a.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following:

 

(I)         Cash Dividend                                                    100%          

 

 

(ii)        Bonus Shares                                                     Nil

 

 

(iii)       Right Shares                                                       Nil

 

 

(iv)       Any other Entitlement / Corporate Action Nil

 

 

(v)        Any other Price-Sensitive information                Nil

 

 

 

 



 

 

 

 

The financial results of the Company consisting of balance sheet, profit and loss account and directors' report are attached.

 

The 23rd Annual General Meeting (AGM) of the Company will be held on Saturday 29th October 2016 at 10:30 a.m., at the registered office of the Company situated at factory premises Pezu, District Lakki Marwat, Khyber Pukhtunkhwa.

 

The Share Transfer Books of the Company will remain closed from Monday, 17th October to Saturday 29th October 2016 (both days inclusive). Transfers received at our Share Registrar/Transfer Agent M/s. Central Depository Company of Pakistan Limited, CDC House, 99-B, Block 'B', S.M.C.H.S. Main Shahrah-e-Faisal, Karachi-74400 at the close of business on Saturday 15th October 2016 will be treated in time for the purpose of above entitlement to the transferees.

 

We will be sending you 200 copies of printed accounts for distribution amongst the Trading Right Entitlement (TRE) Certificate Holders of the Exchange 21 days before the date of AGM.

 

Yours truly,

For: LUCKY CEMENT LIMITED

 

 

 

MUHAMMAD FAISAL

Executive Director and

Chief Strategy, Finance & Investment Officer



 

Unconsolidated Balance Sheet

 As at 30th June 2016














2016


2015






 (Rupees in'000')

ASSETS







NON-CURRENT ASSETS





Fixed assets







Property, plant and equipment


33,887,375


35,018,819


Intangible assets


          126,549


              41,921






     34,013,924


35,060,740










Long-term investments


     12,422,020


       10,925,020


Long-term loans and advances


            75,570


              78,981


Long-term deposits


              3,175


                3,175






46,514,689


46,067,916

CURRENT ASSETS






Stores and spares


       5,993,969


       4,995,423


Stock-in-trade


       1,588,469


       1,580,745


Trade debts


       2,181,788


       2,042,199


Loans and advances


          447,049


          253,350


Trade deposits and short-term prepayments


          

 52,038


       

    50,688


Accrued mark-up


          125,984


            79,257


Other receivables


       1,274,026


       1,032,853


Tax refunds due from the Government


         

538,812


       

  538,812


Short term investments


          400,000


                     -  


Cash and bank balances


     26,805,582


     16,444,622






     39,407,717


     27,017,949









TOTAL ASSETS


     85,922,406


     73,085,865









EQUITY AND LIABILITIES













SHARE CAPITAL AND RESERVES






Share capital


       3,233,750


       3,233,750


Reserves



     66,089,088


     56,025,020






     69,322,838


     59,258,770

NON-CURRENT LIABILITIES






Long-term deposits


            70,666


            69,246


Deferred liabilities


       6,898,078


       6,327,146






       6,968,744


       6,396,392

CURRENT LIABILITIES






Trade and other payables


       8,563,850


       6,382,372


Taxation - net


       1,066,974


       1,048,331






       9,630,824


       7,430,703

















TOTAL EQUITY AND LIABILITIES


  

  85,922,406


    

73,085,865



 

Unconsolidated Profit and Loss Account

 For the year ended 30th June 2016














2016


2015






 (Rupees in'000')









Gross sales



     55,923,115


        53,919,310









Less: Sales tax and federal excise duty


   

      10,086,623


          8,487,245

Rebates and commission


          614,403


             670,758






     10,701,026


          9,158,003









Net sales




          45,222,089


        44,761,307









Cost of sales



    (23,421,515)


       (24,578,219)









Gross profit



  21,800,574


        20,183,088









Distribution costs


      (2,073,181)


         (3,127,018)

Administrative expenses


      (1,095,504)


            (917,635)

Finance costs



           (23,884)


              (25,750)

Other expenses



      (1,628,244)


         (1,442,341)

Other income



       1,420,461


          1,241,450









Profit before taxation


     18,400,222


        15,911,794









Taxation








- current



      (5,015,844)


         (2,942,130)

                             

- deferred



         (440,193)


            (538,066)






      (5,456,037)


         (3,480,196)









Profit after taxation


     12,944,185


        12,431,598









Other comprehensive income :













Other comprehensive income not to be reclassified to





profit and loss account in subsequent periods













Gain/(Loss) on remeasurements of post retirement





   benefit obligations


            40,508


              (71,594)

Deferred taxation


           (10,250)


               16,958






            30,258


              (54,636)

Total comprehensive income for the year


     12,974,443


        12,376,962














 (Rupees)









Earnings per share - basic and diluted


              40.03


                 38.44









 



 

Consolidated Balance Sheet

 As at 30th June 2016














2016


2015






 (Rupees in'000')

ASSETS







NON-CURRENT ASSETS






Fixed assets






Property, plant and equipment


52,357,646


49,900,183


Intangible assets


7,022,261


7,360,811






   59,379,907


   57,260,994










Long-term investments


10,654,528


   10,007,198


Long-term loans and advances


433,207


405,496


Long-term deposits and prepayments


39,939


33,952






70,507,581


67,707,640

CURRENT ASSETS






Stores, spares and consumables


7,016,458


     5,921,887


Stock-in-trade


6,905,826


     6,524,154


Trade debts


3,821,855


     3,473,293


Loans and advances


852,484


        578,609


Trade deposits and short-term prepayments


485,469


        464,392


Accrued mark-up


126,286


          79,257


Other receivables


2,098,339


     2,023,466


Tax refunds due from the Government


538,812


        538,812


Taxation - net


1,152,299


        997,518


Short term investments


400,000


                  -  


Cash and bank balances


28,448,471


   18,155,599






   51,846,299


   38,756,987









TOTAL ASSETS


 122,353,880


 106,464,627









EQUITY AND LIABILITIES





SHARE CAPITAL AND RESERVES






















Share capital


     3,233,750


     3,233,750


Reserves



   70,337,188


   58,190,818










Attributable to the owners of the Holding Company


   73,570,938


   61,424,568


Non-controlling interests (NCI)


     7,888,373


     7,071,234


Total equity


   81,459,311


   68,495,802









NON-CURRENT LIABILITIES














Long-term finance


8,741,955


     8,854,165


Long-term deposits


70,666


          69,246


Deferred liabilities


9,916,313


     9,430,707






   18,728,934


   18,354,118

CURRENT LIABILITIES






Trade and other payables


18,532,947


   15,819,145


Accrued mark-up


146,321


        165,210


Short-term borrowings and running finance


1,937,184


     1,833,247


Current portion of long-term finance


1,549,183


     1,797,105






   22,165,635


   19,614,707

















TOTAL EQUITY AND LIABILITIES


 122,353,880


 106,464,627

 



 

Consolidated Profit and Loss Account

 For the year ended 30th June 2016
















2016


2015
















 (Rupees in'000')










Turnover





     98,651,896


     96,474,922










Less: Sales tax and excise duty



     13,098,661


     11,209,856

Rebates and commission



       3,403,433


       3,147,264







     16,502,094


     14,357,120










Net sales





     82,149,802


     82,117,802










Cost of turnover



    (54,247,203)


    (56,430,360)










Gross profit




     27,902,599


     25,687,442










Distribution cost



      (3,952,914)


      (4,653,188)

Administrative expenses



      (2,077,596)


      (1,984,165)

Finance cost




         (789,810)


      (1,016,406)

Other expenses




      (1,910,496)


      (1,667,303)

Other income




       1,478,074


       1,341,310
















     20,649,857


     17,707,690










Share of gain in equity-accounted investments


       1,179,966


          718,039










Profit before taxation



     21,829,823


     18,425,729










Taxation





      (5,838,794)


      (3,770,485)










Profit after taxation



     15,991,029


     14,655,244










Attributable to:






Owners of the Holding Company


     14,872,560


     13,757,976

Non-controlling interests


       1,118,469


          897,268
















     15,991,029


     14,655,244










Other comprehensive income:














Items not to be reclassified to profit and loss account






in subsequent periods :
















Gain on remeasurements of post retirement benefit obligations


            22,478


            95,850


Deferred taxation



             (6,180)


           (32,853)







            16,298


            62,997










Items to be reclassified to profit and loss account






in subsequent periods :
















Foreign exchange differences on translation of foreign operations


          148,867


            65,408











Loss on hedge during the period


             (2,285)


                    -  


Income tax relating to hedging reserve


                 731


                    -  







             (1,554)


                    -  











Adjustments for amounts transferred to initial
   carrying amounts of hedged item - capital work-in-progress







              1,554


                    -  










Total comprehensive income for the year



     16,156,194


     14,783,649










Attributable to:







Owners of the Holding Company


     15,043,863


     13,834,692


Non-controlling interests


       1,112,331


          948,957
















     16,156,194


     14,783,649
















(Rupees)










Earnings per share - basic and diluted



              45.99


              42.54










 



 

 

Directors' Report (Condensed)

The Directors of your Company have the pleasure in presenting to you the financial results of your Company which include both, the stand-alone and consolidated audited financial statements for the fiscal year ended 30th June 2016.

Overview

Cement industry in Pakistan grew by 9.8% to 38.87 million tons during the fiscal year ended 30th June, 2016 compared to 35.40 million tons during last year. While local sales volume registered a growth of 17.0% to 33.00 million tons during the fiscal year compared to 28.21 million tons during last year; export sales volume registered a decline of 18.4% to 5.87 million tons during the year under review compared to 7.19 million tons of last year.         

 

Your Company achieved an overall growth of 2.1% to 6.93 million tons during the fiscal year 2015-16 compared to 6.79 million tons sold last year. While local sales volume of your Company registered a growth of 20.5% to 5.33 million tons during the fiscal year 2015-16 compared to 4.42 million tons last year; export sales volume declined by 32.2% to 1.61 million tons during the fiscal year 2015-16 compared to 2.37 million tons of last year.

 

The Earnings Per Share (EPS) for the fiscal year ended 30th June 2016 was recorded at PKR 40.03 which is 4.1% higher than the last year's EPS of PKR 38.44.

 

 

Business Performance

a.   Production & Sales Volume Performance

The production and sales statistics of your Company for the fiscal year 2015-16 compared to last year are as follows:

Clinker Production

6,608

6,395

3.3%

Cement Production

6,908

6,795

1.7%

Cement Sales

6,934

6,794

2.1%

 

 

 

 

 

 

The production and sales volume data is graphically presented as under:

 

         

 

 

A comparison of the dispatches of the industry and your Company for the fiscal year ended 2015-16 with last year is presented below:









Cement Industry








Local Sales

33,000 


28,206 


4,794 


17.0% 








Export Sales




  - Bagged

5,728


6,904


(1,176)


(17.0%)

  - Loose

145


291


(146)


(50.1%)

Total Exports

5,873


7,195


(1,322)


(18.4%)









Grand Total

38,873


35,401


3,472


9.8%









Lucky Cement








Local Sales

5,327


4,421


906


20.5%

Export Sales








  - Bagged

1,462


2,082


(620)


(29.8%)

  - Loose

145


291


(146)


(50.1%)

Total Exports

1,607


2,373


(766)


(32.3%)









Grand Total

6,934


6,794


140


2.1%








 

 








 

Local Sales

16.1%


15.7%


2.5%


 

Export Sales







 

  - Bagged

25.5%


30.2%


(15.6)%


 

  - Loose

100.0%


100.0%


0.0%


 

Total Export

27.4%


33.0%


(17.0%)


 








 

Grand Total

17.8%


19.2%


(7.3%)


 

 

 

A comparative year-wise analysis of market share of your company is as under:

 

 

 

 

b.   Financial Performance

The financial performance of your Company for fiscal year 2015-16 compared to the last year is presented below:

 


Revenue

45,222

44,761


1.0%

GP

21,801

20,183


8.0%

OP

18,632

16,138


15.5%

EBITDA

21,201

18,428


15.0%

NP

12,944

12,432


4.1%

EPS

40.03 / Share

38.44 / Share


4.1%


 

Revenue

During the fiscal year under review, your Company achieved an overall net sales revenue growth of 1.0% compared to last year. This was mainly attributable to increase in sales volume.

 

  Cost of Sales

Per ton cost of sales of your Company during the fiscal year under review decreased by 6.6% compared to last year. The decrease was mainly attributable to decrease in coal and other fuel prices as well as positive contribution of WHR plants in Pezu and Karachi.

 

Distribution of Gross Revenue

 

Distribution of Cost of Sales

 


              

     



 

 

 

 

 

 

Gross Profit

Your Company was able to improve its gross profit margin to 48.2% for the year under review compared to 45.1% reported last year.


 

 

Net Profit

Your Company was able to improve its before tax profitability by 15.6% to PKR 18,400 million during the year under review compared to PKR 15,912 million reported last year. Similarly, after tax profit improved by 4.1% to PKR 12,944 million for the year under review compared to PKR 12,432 million reported last year.


 

Earnings per share

The earnings per share of your Company for the year ended 30th  June  2016 was PKR 40.03 compared to PKR 38.44 reported last year.

 


Projects - New and Ongoing

Brownfield Expansion (Installation of additional Line) at Karachi Plant

Keeping in view the expected growth in cement demand on the back of public and private sector construction projects as well as mega infrastructure development projects primarily driven by China Pakistan Economic Corridor (CPEC) initiative, your Company has decided to increase cement production capacity with the instalation of new cement production line at Karachi Plant of 1.25 million tons per annum at a total project cost of around USD 30 million. This additonal line will become operational by the end of the calendar year 2017.

 

Fully integrated green field Cement Plant in Punjab Province of Pakistan

Your Company is engaged with the Government of Punjab for acquisition of land for the project. Similarly, it is also in the process of negotiating and finalizing contract with the equipment supplier. Both these activities are likely to be completed by the end of September 2016.

Electricity Supply to PESCO

NEPRA re-determined the tariff in July 2016; however, since the re-determined tariff was not commercially viable; therefore, your Company decided not to pursue this matter any further.

 

10 MW WHR at PEZU Plant - Kiln

Shipment from the supplier of Project equipment is in progress and the required civil work has already been initiated at the site. The project is expected to be completed by December 2016.

Investments

Investment in 1 x 660 MW, supercritical, coal based power project

On the advise of the government, the management of your Company is currently engaged with relevant authorities to explore the possibility of using both imported as well as local (Thar) coal as fuel. Use of Thar coal in the power project will require some changes to be made in the design of the equipment which was originally finalized with the EPC contractor(s). The target to finalize the EPC contract with the revised scope is October 2016. This project will be put up on the original site at Port Qasim, Karachi.

 

The consolidated audited financial statements of the Company for the fiscal year ended 30th June 2016 include the net assets of Lucky Electric Power Company Limited which is a 100% indirectly owned subsidiary of the Company.

 

Joint Venture Investment in Cement Plant in DR Congo

The construction work at project site is in the final stages to achieve planned Commercial Operations Date (COD) of October 2016.

The effect of 50% share of the net assets of the DR Congo plant has been reflected in the consolidated audited financial statements of the Company for the fiscal year ended 30th June 2016.

 

Equity Investment in Associated Company in 50 MW Wind Farm

Project construction and installation works have been completed. Testing and commissioning activities of the complex are in final stages. The project is expected to achieve COD by September 2016.

 

Corporate Social Responsibility

Your Company is fully committed to elevate the livelihood of the society it operates in. Corporate social responsibility is not just a core-value but it also forms an integral part of your Company's business model. Your Company endures its commitment by staying true to its cause in supporting the best avenues of education, health and environment.  

 

In its resolve to provide quality education to the less-privileged class of the society, your Company continued to offer merit based scholarships to the deserving students across the country enrolled with leading institutions throughout the year. Playing its part in promoting literacy amongst the masses, your Company supplemented the book reading habits in children by celebrating 'International Literacy Day' at under-privileged schools in Karachi and Pezu during the year. Your Company also generously donated to various not-for-profit organizations providing education through public schools nationwide. Your Company also provided school books for blind students registered with Pakistan Welfare Association of Blind.

 

In its efforts to sustain the environment, your Company celebrated Green Office Week on account of World Environment Day (5th June) through awareness building sessions amongst employees, tree plantation drives at Karachi and Pezu Plants, and continuous efforts to reduce the carbon footprint of its business operations.

 

Sustaining its core value of social development, your Company has devotedly participated in numerous health projects across Pakistan. This includes patronage of Aziz Tabba Foundation, a welfare entity dedicated to raising the standards of health, education, and economic wellbeing of humanity by operating a leading cardiac hospital and a leading kidney center in the country. Your Company is also supporting Karachi Relief Trust in Disaster Management and rehabilitation of IDPs, as well as the Special Olympics Pakistan in organizing healthy athletic activities in the country. In addition, your Company continued its support to numerous social improvement initiatives in the country and provided support to various non-governamental organisations.

 

Outlook

Your Company is optimistic about its local volumetric growth in the upcoming financial year. Domestic sales are expected to remain strong on the back of public and private sector construction projects as well as mega infrastructure development projects under the China-Pakistan Economic Corridor (CPEC) initiative. Your Company's strong and debt-free financial position and free cash flow generating ability would continue to support investments in projects and avenues which can bring in further operational efficiencies and enhance shareholders' value.

 

Dividend & Appropriation

Taking into account the current capital and equity investment plans; the board has proposed the final dividend of PKR __/- per share for the financial year ended 30th June 2016.

This approach remains in line with your Company's commitment to consistently provide sustainable returns to the shareholders. Movement in un-appropriated profit is as follows:

 


 Lucky Cement Limited

 PKR in '000



Net Profit for the Year




Un-appropriated profit at the beginning of the year

-

 



Profit available for appropriation

12,974,443         12,944,185




12,974,443       12,944,185



Appropriations




Proposed dividend for the Financial Year 2015-16 @ PKR 10/-

(3,233,750)



Proposed transfer to General Reserves

(9,740,693)



Un-appropriated profit at the end of the year

-               



Basic and diluted earnings per share - PKR

40.03

                  40.03







Acknowledgement

Your directors take this opportunity to express their deep sense of gratitude to all the stakeholders for their encouragement and support.

 

We would like to place on record our sincere appreciation for the commitment, dedication and hard work put in by every member of the Lucky family.

 

And also our shareholders, who have always shown their confidence and faith in the Company.

 

On behalf of the Board

 

MUHAMMAD YUNUS TABBA

Chairman / Director

Karachi: 1st September 2016


This information is provided by RNS
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