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Operational LEPCL to announce dividends from FY 24

Karachi, August 06, 2022: Lucky Electric Power Company Ltd (LEPCL) is operational now and Thar coal will be available from July 2023 onwards at 10,000 tons/day as the company is primarily using international coal at the moment.

LEPCL has received around Rs 10 to 11 billion till date and has overdue receivables of Rs 30bn while the company expects LEPCL to announce dividends from FY24.

LUCK held its corporate briefing on Friday. Lucky Cement Limited (LUCK) announced its FY22 financial results wherein the company posted an unconsolidated profit of Rs 15300mn (EPS: Rs47.31), +9% YoY. The company didn’t announce any dividend alongside FY22 results.

The management shared that proactive procurement of coal and operational efficiencies helped improve margins in the 4th quarter. The company used South African coal during the outgoing quarter with an average cost of Rs 35000/ton.

The company has 45 days of inventory at hand while 15 days of inventory is in transit. Coal is currently being procured at an average cost of Rs 55000/ton.

Furnace oil was 40% of the power mix at Pezu plant due to inconsistent gas supply, so the company is also considering grid connection at the site.

The company has recently invested around Rs4bn in a solar plant of 34MW (5MW net contribution) at the Pezu site, the plant will come online by Dec-2022. A similar sized solar plant is considered for the southern site as well.

The company’s cement expansion is on track and the plant is expected to come online by Dec-2022.

The company’s capacity utilization has been low off-late but since company has clinker reserves available, it will not affect dispatches in the coming months.

LUCK expects a 10-15% decline in domestic cement dispatches for FY23. The company’s country wise export destinations are Sri Lanka (32% share), Bangladesh (37%), Madagascar (16%), South Africa (6%), others (7%) and Afghanistan (2%).

The retention price for cement in the local market is Rs 12,500/ton while retention price in the export market is around Rs 10,000 to 11,000/ton.

Meanwhile, Lucky Motors is currently facing some issues on the import of CKD kits but the management expects the problems to resolve within a quarter’s time. The plant is currently operating on a single shift basis.

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