LUCKY CEMENT LTD.

Analysis of Financial Statement

LUCKY CEMENT LTD.

Analysis of Financial Statement

LUCKY CEMENT LTD.

Lucky Cement Limited has been sponsored by Yunu

which is one of the largest business groups of the Co
grown up remarkably over the last 50 years. The YB
manufacturing activities including Textile, Spi
Finishing, Stitching and Power Generation. The G
industrial establishments other then Lucky Cement Li
1.
2.
3.
4.
5.

Lucky Textile Mills

Fazal Textile Mills Limited
Gadoon Textile Mills Limited
Lucky Energy (Private) Limited
Yunus Textile Mills

Lucky Textile Mills - established in 1983

Fully computerized weaving and stitching unit

Consists of 3 weaving plants comprising of 800 lo
3.4 million meter/month Grey fabric capacity, 83
processing and 15 million meters/ annum made up
Power generation capacity 6.20 MW
Expertise in ready-made curtains and accessories
Fazal Textile Mills Limited - established in 1987

One of the top spinning mill in the country wi

Produces 100% Grey Cotton Ring Spun Yarn and
Heather Yarns? ISO 9001:2000 certified

Gadoon Textile Mills Limited - established in 1988

First of the only two mills in the world producing Co

194,392 installed spindles. Produces high quality Com
Spinning yarn, Core Spun yarn and 100% Grey Cotto
Also has a power plant of 34 MW
OKO Tex Standard 100 certified

Lucky Energy (PVT) Limited - established in 1993

- Captive power unit

- Supplies uninterruptible power to Lucky Textiles, F
- Textiles & Lucky Knitwear
- Generation capacity of 17.4 MW
Yunus Textile Mills Limited - established in 1998

Analysis of Financial Statement

3 printing and
- State of the art machinery for weaving,

- Self power generation capacity of 14 MW

- 250 Air Jet looms installed

- Major Player in home textile and garment exports

LUCKY CEMENT LTD.

At Lucky Cement we comprehend our core values to be the most significant factor leading to
the existence and growth of this prestigious organization.
How we accomplish our mission is as vital as the mission itself. Thus these values are not
only on paper and pen but lounge deep in the heart of each individual working or associated
with lucky cement.
These values are reflected within the name of LUCKY itself: They are as follows.
L = LEADERSHIP - We don't just innovate industry practices - we are defining the way
business will be done in the future. We are pioneers.
U = UNDERSTANDING - Whereby we understand the demands of cement industry at a
global level, parallel to the needs of people, associated with us in one way or the other.
C = COMMITMENT - One word that sums it all at Lucky Cement is the commitment of
people to quality, relationship and most importantly our customers, who can never be
disappointed at any cost.
K = KONSTANT - The most important element to balance any equation worldwide, at
Lucky Cement we assign the value of Constant with consistency of profits, as profits are
required to sustain and grow any organization. They are in-turn the ultimate measure of
efficiency.
Y = YOU - This attitude is a built-in character. At lucky cement we always maintain, You
first, Me last approach, not only to please but to delight our employees, shareholders,
customers, and all the other people who expect a result from Lucky Cement.

Analysis of Financial Statement

LUCKY CEMENT LTD.

To be the leading exporter of cement from Pakistan for the regional countries as well as to explore other
potential export markets. Our future strategy is to explore investment possibilities outside Pakistan in the
cement industry to become a leading global producer.
Exploring and Establishing Export Markets
We have a firm commitment in exploring new markets for sustainable business growth. Lucky Cement has
been successful in establishing its brand in several export markets including Middle East, India, Sri Lanka
and East and South African countries. We are also planning to setup some offshore facilities to further
strengthen our export business on regular basis

Product:
Lucky Cement aims at producing cement to suit every user. The following types of cement
are available:
1.
2.
3.

Ordinary Portland Cement

Sulphate Resistant Cement
Slag Cement

Analysis of Financial Statement

LUCKY CEMENT LTD.

ORDINARY PORTLAND CEMENT (OPC)

Ordinary Portland cement is available in darker shade as well as in light shades in Lucky Star
with different brand names to suit the requirement of users.
It is used in all general constructions especially in major prestigious projects where cement is
to meet stringent quality requirements; it can be used in concrete mortars and grouts etc.
Ordinary Portland cement is compatible/consumable with admixture/ retarders etc.
SULPHATE RESISTANT CEMENT (SRC) Sulphate resistant Cements best quality is to
provide effective and long lasting strength against sulphate attacks and is very suitable for
constructions near sea shores as well as for canals linings. It provides very effective
protection against alkali attacks.
SLAG CEMENT Slag cement is also available for specific user requirements. Slag cement,
has been incorporated into concrete projects for over a century to improve durability and
reduce life cycle costs. Among its measurable benefits in concrete are better workability and
finish ability, higher compressive and flexural strengths, and improved resistance to
aggressive chemicals.
BRANDS AVAILABLE AT LUCKY CEMENT

Lucky CEMENT (REGULAR)

Lucky STAR

Lucky GOLD

Lucky SULPHATE RESISTANT CEMENT (SRC)

Analysis of Financial Statement

LUCKY CEMENT LTD.

Here is the income statement and balance sheet in below boxes. It shows the company sales,
gross profit and net profit. If we see that the sales are increasing with the passage of time but the
cost is same so it decreases the profit margin. The company share capital is same for 6 year so it
means that the company is not issuing the more capital.

Income Statement
Amount in'000'
turnover
cost of sales
gross profit
distribution cost
administrative cost
operating profit
finance cost
other income /
charges
profit before
taxation
taxation
profit after
taxation

2004
29078
07
18073
53
11004
54

2005
39801
09
26005
89
13795
20

19599

23817

46751
10341
04

61355
12943
48

10842

21691

52161
97110
1
28533
9
68576
2

62706
12099
51
38336
4
82658
7

2006
80541
01
50737
97
29803
04
10348
9
10674
0
27700
75

2007
125218
61
884670
8
36751
53
497729

2008
169578
79
126007
06
43571
73
115505
4

2009
263304
05
165191
38
98112
67
242783
7

111311
30661
13

125752
30763
67

862847
487085
26903
51

126743

165936
72174
94
123697
1

82809
13429
0
25529
76
61702
6
19359
50

143059
25472
92

Analysis of Financial Statement

643095
23065
29
371141
26776
70

803521
51770
02
580453
45965
49

LUCKY CEMENT LTD.

Balance Sheet
Amount in'000'
Share Capital &
Reserve
Non Current
Liabilities
Current
Liabilities
Total Equity &
Liabilities

2004
43070
96
17743
46
93086
2
70123
04

2005
513368
3
753039
0
214276
3
148068
36

2006
706963
3
118011
09
475203
5
236227
77

2007
935355
0
100242
47
635242
9
257302
26

2008
186554
23
789675
4
768689
7
342390
74

2009
232519
72
604171
2
909867
8
383923
62

Non Current
Assets

50342
32
19780
92
70123
24

134643
25
134251
1
148068
36

191672
83
445549
4
236227
77

203210
83
540914
3
257302
26

258835
50
835552
4
342390
74

305344
20
785794
2
383923
62

Current Assets
Total Assets

Vertical Analysis
Income Statement
Vertical Analysis %
turnover
cost of sales
gross profit
distribution cost
administrative cost
operating profit
finance cost
other income /
charges
profit before
taxation
taxation
profit after
taxation

2004
100.0
0
62.16
37.84
0.67
1.61
35.56
0.37

2005
100.0
0
65.34
34.66
0.60
1.54
32.52
0.54

2006
100.0
0
63.00
37.00
1.28
1.33
34.39
1.03

2007
100.0
0
70.65
29.35
3.97
0.89
24.49
6.89

2008
100.0
0
74.31
25.69
6.81
0.74
18.14
0.75

2009
100.0
0
62.74
37.26
9.22
0.63
27.41
4.70

0.04

0.02

0.02

-0.04

0.04

0.03

33.40
9.81

30.40
9.63

31.70
7.66

21.49
1.14

13.60
-2.19

19.66
2.20

23.56

20.77

24.04

20.34

15.79

17.46

If we see the vertical analysis of the Income statement it shows that the company performance is
decreasing. The issue in decline in the profits of the company is that is world recession,
electricity problems, democracy, and increase in the cost due to the increase in the raw material
prices.

Analysis of Financial Statement

LUCKY CEMENT LTD.

Balance Sheet
Share Capital &
Reserve
Non Current
Liabilities
Current
Liabilities
Total Equity &
Liabilities

Non Current
Assets
Current Assets
Total Assets

61.42

34.67

29.93

36.35

54.49

60.56

25.30

50.86

49.96

38.96

23.06

15.74

13.27
100.0
0

14.47
100.0
0

20.12
100.0
0

24.69
100.0
0

22.45
100.0
0

23.70

71.79
28.21
100.0
0

90.93
9.07
100.0
0

81.14
18.86
100.0
0

78.98
21.02
100.0
0

75.60
24.40
100.0
0

100.00

79.53
20.47
100.00

In the analysis of the Balance sheet we see that the current assets are increasing with the passage
of time and there is a heavy amounts of the current assets which shows the negative image. As
the more current assets shows the more liquidity but in this case its more access.

Horizontal Analysis
Income Statement
In %age

2004

2005

turnover

100

36.88

cost of sales

100

43.69

gross profit

100

25.36

distribution cost

100

21.52

administrative cost

100

31.24

operating profit

100

finance cost

100

25.17
100.0
6

2006
176.9
8
180.7
3
170.8
2
428.0
3
128.3
2
167.8
7
663.7
8

other income / charges

100

20.22

157.4
5

Analysis of Financial Statement

2007
330.6
3
389.4
8
233.9
7
2439.
56
138.0
9
196.5
7858.
37
1033.
81

2008
483.1
8
597.1
9
295.9
4
5793.
43
168.9
8
197.4
9

2009
805.51
814
791.57
12287.
55
254.94

1069

597.95
11309.
07

1132.
9

1440.4
6

LUCKY CEMENT LTD.

profit before taxation

100

24.6

taxation

100

34.35

profit after taxation

100

20.54

Horizontal analysis (2)

year vs year %

05 vs
2004 04

turnover
cost of sales

100
100

35.88
43.89

gross profit

100

25.36

distribution cost
administrative cost

100
100

21.52
31.24

operating profit

100

finance cost

100

25.17
100.0
6

162.9

177.0
4

116.2
4
182.3
1

-49.86
271.4
6

137.5
2
230.0
7
290.4
7

433.11
103.43
570.28

06 vs 07 vs 08 vs 09 vs
05
06
07
08
102.3
6
55.47
35.43
55.27
95.1
74.36
42.37
31.1
116.0
4 23.31 18.71 125.18
334.5
380.9
132.0
2
5
6 110.19
73.97
4.28
17.96
31.95
114.0
1 10.69
0.33 134.61
281.7
941.9
7
7 -85.31 875.97

Now if we see the horizontal analysis of the income statement shows that the according to the
base year 2005 the sales are improving with the passage of time. Due to the increase in the cost
of goods in 2009 the gross profit decline. And it shows that the cost of raw material has been
increased day by day.

Balance Sheet
In % age
Share Capital & Reserve
Non Current Liabilities
Current Liabilities

2004
100.0
0
100.0
0
100.0
0

2005

2006

19.19
324.4
0
130.1
9

64.14
565.1
0
410.5
0

Analysis of Financial Statement

2007
117.1
7
464.9
5
582.4
2

2008
333.1
3
345.0
5
725.7
8

2009
439.85
240.50
877.45
10

LUCKY CEMENT LTD.

Total Equity & Liabilities

Non Current Assets

Current Assets
Total Assets

horizontal analysis(2)
year vs year %
Share Capital & Reserve
Non Current Liabilities
Current Liabilities
Total Equity & Liabilities

Non Current Assets

Current Assets
Total Assets

100.0
0

111.1
6

236.8
8

266.9
3

388.2
7

100.0
0
100.0
0
100.0
0

167.4
6

280.7
4
125.2
4
236.8
8

303.6
6
173.4
5
266.9
3

414.1
5
322.4
0
388.2
7

-32.13
111.1
5

447.50

506.54
297.25
447.50

05 vs
06vs
07 vs
08 vs
09 vs
2004 04
05
06
07
08
100.0
0
19.19
37.71
32.31
99.45
24.64
100.0
324.4
0
0
56.71 -15.06 -21.22
-23.49
100.0
130.1
121.7
0
9
7
33.68
21.01
18.37
100.0
111.1
0
6
59.54
8.92
33.07
12.13

100.0
0
100.0
0
100.0
0

167.4
6
-32.13
111.1
5

42.36
231.8
8

6.02

27.37

17.97

21.40

54.47

-5.96

59.54

8.92

33.07

12.13

The balance sheet shows that the assets are increasing with the time and if we see fixed assets are
increased but in 2009 the assets decrease. But it also increases in the cash and bank. The share
capital is same in the 5 year the long term liabilities are increased with increasing ratio but in
2009 it also decreases.

Analysis of Financial Statement

11

LUCKY CEMENT LTD.

Ratio Analysis
Description
Profitability Ratio
%

2004

2005

2006

2007

2008

2009

Percent
Percent

37.84
42.97

34.66
38.5

37
39.58

29.35
31.54

25.73
23.57

37.26
31.51

Percent
Percent

23.58
15.92

20.77
16.1

24.04
27.38

20.34
27.23

15.79
14.35

17.46
19.77

Percent

11.28

6.53

10.26

13.15

10.08

15.69

times

0.63

1.88

2.34

1.75

0.84

0.65

times

95.38

59.67

33.45

3.55

24.27

5.83

Times

12.58

18.06

18.54

15.97

18.18

17.33

Days
Times

29.01
5.96

20.21
5.37

19.69
4.91

22.86
5.9

20.08
4.95

21.06
5.31

Days
Days
Percent
Percent

61.22
-32.21
41.47
57.76

67.92
-47.71
26.88
29.56

74.3
-54.61
34.09
42.02

61.84
-38.99
48.67
61.62

73.81
-53.73
49.53
65.52

68.79
-47.73
68.58
86.23

Current ratios
Percent
Quick/ Acid test ratio
Percent
Investment valuation Ratios
EPS ratio (after tax)
Rs.
P/E ratio (after tax)
Rs.
Cash dividend per
share
Rs.

2.12
1.94

0.63
0.57

0.94
0.85

0.85
0.75

1.09
1

0.86
0.73

2.8
13.97

3.14
13.51

7.35
13.66

9.67
12.72

9.84
9.96

14.21
4.12

Gross profit to sales

EBITDA to sales
Net profit after tax to
sales
ROE after tax
Return on capital
employed

Solvency/ Debt
Ratio
Debt Equity ratio
Interest coverage
ratio
Operating/ Activity
Ratios
Inventory turnover
No. of days in
inventory
Creditor Turn over
No. of days in
payables
Operating cycle
Total assets turnover
Fixed assets turnover
Liquidity Ratios

Analysis of Financial Statement

1.25 _

4
12

LUCKY CEMENT LTD.

Dividend Yield
Dividend Payout ratio
Dividend Cover Ratio
Market Value Per
Share
EBITDA

Percent
Percent
Times
Rs.
Rs. In
Million

_
_
_

_
_
_
39.1

42.39

1
13.61
7.35
100.4
2

1249

1532

3188

1.02 _
12.93 _
7.74 _
123.0
4 97.93
3949

4055

6.83
28.15
3.55
58.53
8366

The ratios are calculated as above shows the company performance. We can explain them with
the help of graph.

Profitability Ratio

The gross profit decrease with the time docline and lowest in 2008 shows that the profit decrese.
And the profit is increase in the 2009 year.

Debt ratios

Analysis of Financial Statement

13

LUCKY CEMENT LTD.

As you see in 2007 total debt is highest and the interest coverage ratio times is high in whole
ratios.

Operating Cycle and Inventory Ratios

As you see no. of days in payable increse the limit of 50. Operating cycle shows in negative.
Which shows the company performace good. And the no of days inventory payable is at the zero
point which mean that the company is unsing the just in time inventory system.

Assets Management Ratios

As you see fixed assets turnover decrease in 2005 which mean that the company current asset
turnover is high and the company is more liquide. And in the 2009 fixed asset turnover is
highest.

Analysis of Financial Statement

14

LUCKY CEMENT LTD.

As you see inventory turnover is gratually more than 10 days and creditor turnover times is less
than 5 days in whole year.

Current and Quick Ratios

As you see the current ratios decrease in 2004 due to the low current assets and high inventory
level. We ca see the it increase in 2008 but decrease in 2009.

Analysis of Financial Statement

15