KARACHI, Aug 15: Lucky Cement declared profit-after-tax (PAT) at Rs6.78 billion for the year ended June 30, which represented a hefty growth of 70.82 per cent over the earlier year’s net profit at Rs3.97 billion.

Earning per share (eps) jumped to Rs20.97 compared with Rs12.28 the previous year.

The board, which met on Monday, announced a cash dividend at Rs6 per share, which came as a pleasant surprise to many market participants who were expecting the company to skip cash and retain it for payment of purchase price of acquisition of ICI Pakistan.

A statement issued by the company stated that the profit was “highest ever” earned by the company."

Net sales surged by 28.08pc to Rs33.323 billion from Rs26.018 billion in 2010-11.

The company attributed "record breaking" profit to higher sales volume in the domestic market coupled with better retention prices.

The local sales volume during the year registered a growth of 7pc to 3.72 million tons compared with 3.46 million tons last year.

However, export sales volume declined by 4pc from 2.25 million tons from 2.35 million tons mainly due to the "intentional focus" on the domestic market, which contributed the greater sum to the overall profitability of the company. The financing cost of the company took a sharp plunge to Rs253.23 million from Rs517.79 million, which helped produce healthy results.

The company stated that it undertook various capital expenditures which included new RDF/TDF plants and a new European origin Packing Plant for its Karachi Project. The alternative fuel (RDF/TDF) plants replaced up to 20pc of coal consumption with other cheap alternative fuels.

During the year, the project of electricity supply to Hesco was also completed whereby a grid station and 22km interconnection lines were installed, resulting in supply of electricity to Hesco with effect from July 1, 2012.

Lucky Cement also reported progress on its Joint venture investments for cement plant in DR Congo and grinding facility in Iraq.

During the year, the company also acquired approval of its shareholders for an investment of $ 4.0 million in 13.79pc share in 50MW wind farm project being set up by the group’s associated company, Yunus Energy Limited.

As a part of the group’s strategy to diversify its business interests, the company in consortium with other group entities acquired 75.81pc stake in ICI Pakistan, consisting of four segments of soda ash, polyester fiber, life sciences and chemicals, which, the company said, were integral to the economic fabric of the country.

The share purchase agreement was signed in Netherlands with the parent company of ICI Pakistan at a bid value of $152.50 million, payable in equivalent of rupees.

"The financing of this transaction has been planned in a manner to carry minimal debt on the books of the company," the company statement said.