Lucky Core Industries’ Profit Up by 25% in First Half of FY25

Lucky Core Industries (LCI) announced its financial result today, posting a profit after tax of Rs. 6,301 million (EPS: PKR 68.23) during 1HFY25, up by 25 percent YoY amid higher gross margins and elevated other income. On a quarterly basis, net profit during 2QFY25 arrived at Rs. 3,677 million (EPS: Rs. 39.82), up by 47 percent YoY. In addition to the result, the company announced an interim cash dividend of Rs. 34.00/share in 2QFY25 (Rs. 27.00/share in 2QFY24). Net sales in 1HFY25 witnessed an increase of 4 percent YoY, settling at Rs. 62,246 million compared to Rs. 60,058 million during SPLY. Moreover, the topline in 2QFY25 arrived at Rs. 31,517 million, up by 1 percent YoY. Gross margins increased by 150bps YoY to reach 22.9 percent in 1HFY25. According to Arif Habib Limited, this improvement was primarily driven by a 5.3 percent YoY decline in coal prices. Additionally, the deregulation of non-essential medicines contributed positively to the gross margin growth in the pharma sector. Notably, gross margins in 2QFY25 saw a more significant improvement, rising by 270bps, largely due to these factors. Other income grew by 28 percent YoY, reaching Rs. 2,444 million in 1HFY25, driven by higher earnings from cash and cash equivalents, reflecting improved short-term investments. Moreover, other income during 2QFY25 arrived at Rs. 1,617 million, portraying a surge of 62 percent YoY. Finance costs decreased by 35 percent YoY to Rs. 1,300 million in 1HFY25, primarily due to the favorable decline in interest rates. The company’s effective taxation arrived at 36.7 percent in 2QFY25 vis-à-vis 35.1 percent in 2QFY24.