Lucky Cement Ltd. (LUCK) continued its strong performance into 9MFY25, posting a 47% YoY jump in standalone earnings to PkR27.3bn (EPS: PkR18.7), driven by higher dividend income and improved sales volumes. Consolidated earnings also grew by 13% YoY, reaching PkR57.3bn (EPS: PkR39.1), supported by robust contributions across subsidiaries and joint ventures. As reported by AKD Securities.
While local cement offtakes declined by 7% YoY to 4.5mn tons, LUCK maintained a steady 16.5% domestic market share. On the export side, volumes surged by 76% YoY to 2.5mn tons, supported by rising global demand and new market entries, including the U.S. This pushed the company’s export market share up to 39% from 29% last year.
During 3QFY25, the company reported an average local retention price of PkR14,500/ton. Export prices stood at US$40/ton for cement and US$30/ton for clinker. Management noted that weighted average coal costs during the quarter were PkR35,000/ton, with the South plant relying mostly on imported coal and the North plant using predominantly local and some Afghan coal.
LUCK advanced its sustainability goals with the commissioning of a 28.8MW captive wind power project at its South plant, raising the share of renewable energy to 55% through a combination of wind, solar, and waste heat recovery (WHR) sources. Battery storage installation is also underway to further enhance efficiency.
Internationally, LUCK’s operations in Iraq and Congo operated at optimal efficiency and high utilization levels. Meanwhile, Lucky Motor Corporation (LMC) recorded higher utilization in its auto segment, although mobile segment sales declined due to the imposition of GST.
In the power segment, Lucky Electric Power Company (LEPCL) plans to lower generation costs next year with the start of Thar coal supply. In the mining venture NRL, scout drilling with 13 holes produced encouraging results, although a detailed feasibility study is expected to take another 3–4 years.
Looking ahead, management expects growth trends seen in 9MFY25 to continue into the final quarter. For FY26, demand is projected to remain stable or slightly positive. The chemical and auto divisions are expected to track overall economic growth, while the power sector’s performance will depend on developments in the energy and transmission sectors, including circular debt dynamics.
Given a 98% stock price rally so far this fiscal year, AKD Securities revised its rating on LUCK to ‘Neutral’ and reaffirmed a December 2025 target price of PkR393/share, implying a potential upside of 10%.
