Lucky Core Industries’ Profits Up by 841% to Rs. 18.9 Billion in Q3

Lucky Core Industries Limited (PSX: LCI) announced its results for the 3rd quarter/9 months ending March 31st, 2023.

The company posted a profit after tax (PAT) of Rs. 18.9 billion (EPS: Rs. 204.98). up by 841 percent year-on-year (YoY) compared to Rs. 2.0 billion (EPS: Rs. 21.79) during the same period last year. This takes the 9MFY23 earnings to Rs. 22.0 billion (EPS: Rs. 237.74), up by 181 percent YoY.

According to Arif Habib Limited (AHL), the uptick in earnings was due to a gain on the partial disposal of NutriCo Morinaga (Rs. 8.9 billion) and a remeasurement gain on retained interest in NutriCo Morinaga (Rs. 8.2 billion) and higher PSF margins. On a quarter-on-quarter (QoQ) basis, earnings were up by 15.4x.

During 3QFY23, net sales surged up 19 percent YoY to Rs. 30.8 billion due to higher sales across all segments, supporting the overall lump. However, sales of NutriCo Morinaga were not included during 3QFY23 due to a change in its classification from a subsidiary to an associate.

Gross margins went up by 115 basis points YoY to 23 percent during 3QFY23. The rise in gross margins was led by better performance of the PSF segment along with lower coal prices.

During 3QFY23, LCI booked an exchange loss of Rs. 729 million amid PKR depreciation.

The finance costs of the company went up by 135 percent YoY or 139 percent QoQ to Rs. 800 million during 3QFY23 due to augmented short-term borrowing along with higher interest rates.

The company booked a gain on the partial disposal of NutriCo Morinaga (Rs. 8.9 billion) and a remeasurement gain on the retained interest of the same (Rs. 8.2 billion).

At the time of filing, LCI’s scrip at the bourse was Rs. 555, up 0.91 percent or Rs. 4.98 with a turnover of 959 shares on Thursday.

Source: Pro Pakistani