Q1 2025 Lucky Cement Ltd Earnings Call Transcript
Key Points
- Successful commissioning of a 28.8 megawatt wind project, increasing renewable energy capacity to over 100 megawatts.
- Foreign cement operations are performing robustly with strong margins and demand, operating at over 90% capacity.
- Higher export sales have offset the decline in local sales, leading to a marginal increase in total cement dispatches by 1.8%.
- The company has a strong balance sheet with surplus cash, allowing for potential future investments and opportunities.
- Positive macroeconomic indicators, such as expected policy rate cuts, suggest an improvement in consumer buying power and potential demand uptick.
- Local sales volumes have declined due to depressed domestic demand, high inflation, and increased production costs.
- Market share has slightly decreased from 17.5% to 16.9% due to competitive forces and adjustments in sales.
- EBITDA profitability has seen a downward trajectory despite higher revenue from exports.
- The company faces double taxation on dividends from subsidiaries, impacting overall profitability.
- Cement demand is currently down by 15% compared to the previous year, with no immediate expansion plans due to low utilization rates.
Assalam-o-Alaikum, everyone. Welcome to Lucky Cement annual briefing for first quarter FY25. My name is Arsalan and I will be moderating the Zoom session. Now, I would like to request Sir Atif Qarudi to start the presentation.
Ji, Bismillah-ir-Rahman-ir-Rahim. Thank you everyone for joining. are analysts between for first quarter FY 2025. So more or less very stable operations and results as compared to the previous year-end fourth quarter 2024. So the key highlights, I think the biggest one is our successful commissioning of our wind project for 28.8 megawatts for our Karachi plant or South plant. So with the addition of this wind power capacity, now Alhamdulillah our total capacity of renewable energy which includes wind, solar and waste heat recovery is now above 100 megawatts in capacity terms. So but on a Weighted Average Bases and Availability of Energy Bases, if you do the math, are availability of renewables, wind, solar and waste heat recovery is 55% of total
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