Karachi: Lucky Cement (LUCK) announced a 6% year-over-year increase in its consolidated earnings for the second quarter of the fiscal year 2026, reporting an earnings per share (EPS) of Rs15.44. The company recorded total earnings of Rs22.62 billion, which aligns with analysts' expectations. However, the company did not declare a cash dividend.

According to JS Global, Lucky Cement's net revenue on a consolidated basis rose by 9% year-over-year to Rs123.5 billion, while remaining stable on a quarter-over-quarter basis. The revenue growth is attributed primarily to improved performance from its subsidiaries, particularly Lucky Motors, which benefitted from trends in the automotive industry.

On an unconsolidated basis, the company's net sales decreased by 2% year-over-year, largely due to a decline in retention prices. Despite this, domestic cement sales increased by 8% quarter-over-quarter and 9% year-over-year in terms of units sold in the second quarter. Standalone profits increased by 18% year-over-year but saw a 41% decline compared to the previous quarter, reaching Rs5.89 per share. This quarterly decline was largely due to a 58% drop in other income, as the company did not receive a dividend from Lucky Electric, which had contributed Rs6 billion in the first quarter.

The company reported standalone gross margins of 36% for the quarter, slightly higher than the 35% recorded in the same period last year but lower than the 39% achieved in the previous quarter. The share of profit from associates increased by 4% year-over-year to Rs5.32 billion. Finance costs decreased by 29% year-over-year, which the company attributes to reduced debt levels.

Furthermore, other income rose by 21% year-over-year, driven by higher finance income and dividends from subsidiaries. The effective tax rate for the standalone business was 29% for the quarter, compared to 36% in the previous year, while the consolidated effective tax rate was 17.9%, down from 20.6% in the previous year. Lucky Cement is currently trading at a price-to-earnings ratio of 7.1 for FY26E and 6.1 for FY27F.

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