Lucky Cement net profit climbs 19% on robust revenue and plunging finance costs

Quarterly earnings rise to Rs 23.56 billion as an 11% sales growth and a massive 40% reduction in borrowing costs drive profitability

Lucky Cement reported a profit after tax of Rs23.56 billion for the quarter ended September 30, 2025, a 19% increase from Rs19.8 billion in the same period last year.

Key Financial Highlights (Q1 FY26):

  • Earnings Per Share (EPS): Jumped to Rs15.01 from Rs12.24.

  • Net Revenue: Increased by 11% to Rs123.6 billion.

  • Gross Profit: Stood at Rs31.5 billion, compared to Rs31.7 billion last year.

  • Finance Costs: Reduced by 40% to Rs4.8 billion.

  • Profit Before Tax: Rose 23% to Rs29.8 billion.

The company delivered a strong bottom-line performance driven by a dual strategy of top-line growth and strategic financial management. Net revenue saw a robust 11% year-on-year increase to Rs123.6 billion, indicating healthy demand. However, the cost of sales grew at a faster pace of 15%, rising to Rs92.11 billion, which led to a slight contraction in gross profit.

The standout feature of the quarter was a dramatic 40% reduction in finance costs, which fell to Rs4.8 billion from Rs8.02 billion, significantly boosting pre-tax profitability. This was further supported by a 27% increase in other income, which climbed to Rs4.1 billion. The effective management of borrowing costs and other income streams more than compensated for the margin pressure at the gross level, leading to a 23% surge in profit before tax. The bottom line was tempered by a 40% increase in the tax expense, which rose to Rs6.2 billion.

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