RNS Number : 8211K
Lucky Cement Limited
24 April 2020
 

 

 

 

LCK/ANNOUNCE/2019-20                                                                                    April 23, 2020

 

 

The General Manager

Pakistan Stock Exchange

Limited

Karachi

The Deputy Chief

Securities & Exchange

Commission of Pakistan

Islamabad

The London Stock Exchange

10 Paternoster

Square,

London

 

Dear Sir(s),               

 

FINANCIAL RESULTS FOR THE 3RD QUARTER ENDED MARCH 31, 2020

 

This is to inform you that the Board of Directors of our Company in their Meeting held on Thursday, April 23, 2020 at 4:30 p.m., at 6-A, Muhammad Ali Housing Society, A. Aziz Hashim Tabba Street, Karachi-75350 recommended the following:

 

 

(I)                                                  Nil

 

(ii)                                                    Nil

 

(iii)                                                     Nil

 

(iv)                                              Nil

 

 

The financial results of the Company consisting of Statements of Financial Position, Statements of Profit and Loss and Other Comprehensive Income and Directors' Report are annexed.

 

The 3rd quarterly report of the Company for the period ended March 31, 2020 will also be transmitted through PUCARS separately, within the specified time.

 

Yours truly

for LUCKY CEMENT LIMITED

 

 

 

Atif Kaludi

CFO/Director Finance

 

 

 

LUCKY CEMENT LIMITED

 

Unconsolidated Condensed Interim Statement of Financial Position

 

 As at March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Un-audited)

 

 

 

(Audited)

 

 

 

 

 

 

March 31,

 

 

 

June 30,

 

 

 

 

 

 

2020

 

 

 

2019

 

 

 

 

 

 

 (PKR in'000')

 

ASSETS

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

Fixed assets

 

 

 

 

 

 

 

 

Property, plant and equipment

 

60,856,953

 

 

 

57,276,184

 

 

Intangible assets

 

14,205

 

 

 

18,152

 

 

 

 

 

 

60,871,158

 

 

 

57,294,336

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments

 

 44,044,485

 

 

 

 34,313,588

 

 

Long-term loans and advances

 

 91,213

 

 

 

 99,316

 

 

Long-term deposits

 

3,175

 

 

 

3,175

 

 

 

 

 

 

105,010,031

 

 

 

91,710,415

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Stores and spares

 

 7,598,535

 

 

 

 6,809,724

 

 

Stock-in-trade

 

 2,802,882

 

 

 

 4,253,020

 

 

Trade debts

 

 2,613,238

 

 

 

 2,058,719

 

 

Loans and advances

 

 523,370

 

 

 

 686,525

 

 

Trade deposits and short term prepayments

 

 81,672

 

 

 

 74,223

 

 

Accrued return

 

 105,409

 

 

 

 113,869

 

 

Other receivables

 

 2,547,157

 

 

 

 2,130,907

 

 

Tax refunds due from the Government

 

 538,812

 

 

 

 538,812

 

 

Short term investment

 

 2,917,749

 

 

 

 1,055,754

 

 

Cash and bank balances

 

 11,803,046

 

 

 

 15,657,246

 

 

 

 

 

 

 31,531,870

 

 

 

 33,378,799

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 136,541,901

 

 

 

 125,089,214

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

SHARE CAPITAL AND RESERVES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share Capital

 

 

 3,233,750

 

 

 

 3,233,750

 

Reserves

 

 

 

 95,369,371

 

 

 

 91,084,667

 

 

 

 

 

 

 98,603,121

 

 

 

 94,318,417

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term deposits

 

 230,597

 

 

 

 90,264

 

 

Deferred liabilities

 

 7,131,996

 

 

 

 7,102,483

 

 

 

 

 

 

 7,362,593

 

 

 

 7,192,747

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Trade and other payables

 

 21,170,544

 

 

 

 19,195,617

 

 

Short term borrowings

 

 7,846,639

 

 

 

 2,900,000

 

 

Unclaimed dividend

 

 55,989

 

 

 

 53,953

 

 

Unpaid dividend

 

 23,706

 

 

 

 91,119

 

 

Taxation - net

 

 1,479,309

 

 

 

 1,337,361

 

 

 

 

 

 

 30,576,187

 

 

 

 23,578,050

 

 

 

 

 

 

 37,938,780

 

 

 

 30,770,797

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

 136,541,901

 

 

 

 125,089,214

 

 

LUCKY CEMENT LIMITED

Unconsolidated Condensed Interim Statement of Profit or Loss and Other Comprehensive Income

 For the nine months ended March 31, 2020 (Un-audited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

Quarter Ended

 

 

 

 

 

March 31,

 

March 31,

 

March 31,

 

March 31,

 

 

 

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 

 (PKR in'000')

 

 (PKR in '000')

 

 

 

 

 

 

 

 

 

 

 

 

Gross sales

 

 

 47,947,798

 

 52,314,992

 

 16,852,237

 

17,429,651

 

 

 

 

 

 

 

 

 

Less:

Sales tax and federal excise duty

 

 14,688,143

 

 14,061,754

 

 5,327,336

 

 4,577,359

 

Rebates, incentive and commission

 

 811,609

 

 732,154

 

 288,235

 

 286,283

 

 

 

 

 

 15,499,752

 

 14,793,908

 

 5,615,571

 

 4,863,642

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 32,448,046

 

 37,521,084

 

 11,236,666

 

12,566,009

Cost of sales

 

 (27,921,847)

 

 (26,261,232)

 

 (9,934,705)

 

(8,730,172)

Gross profit

 

 4,526,199

 

 11,259,852

 

 1,301,961

 

 3,835,837

Distribution cost

 

 (2,931,117)

 

 (2,101,175)

 

 (1,036,697)

 

 (726,666)

Administrative expenses

 

 (922,872)

 

 (870,017)

 

 (325,544)

 

 (312,270)

Finance cost

 

 (92,421)

 

 (11,671)

 

 (44,475)

 

 (9,773)

Other expenses

 

 (290,758)

 

 (875,770)

 

 (96,447)

 

 (305,168)

Other income

 

 2,989,318

 

 2,349,194

 

 1,280,287

 

 742,623

Profit before taxation

 

 3,278,349

 

 9,750,413

 

 1,079,085

 

 3,224,583

Taxation

 

 

 

 

 

 

 

 

 

-current

 

 (568,205)

 

 (2,203,674)

 

 (201,522)

 

 (770,084)

 

-deferred

 

 225,272

 

 747,199

 

 121,277

 

 338,650

 

 

 (342,933)

 

 (1,456,475)

 

 (80,245)

 

 (431,434)

 

 

 

 

 

 

 

 

 

 

 

 

Profit after taxation

 

 2,935,416

 

 8,293,938

 

 998,840

 

 2,793,149

Other comprehensive income:

 

 

 

 

 

 

 

 

Other comprehensive (loss) / income which will not be reclassified to statement of profit or loss in subsequent periods

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) / income on remeasurement of equity instrument at fair value through other comprehensive income

 (9,027)

 

 (5,912)

 

 (8,107)

 

 5,026

 

 

 

    Deferred tax thereon

 

 1,354

 

 887

 

 1,216

 

 (753)

 

 

 (7,673)

 

 (5,025)

 

 (6,891)

 

 4,273

Total comprehensive income for the period

 

 2,927,743

 

 8,288,913

 

 991,949

 

 2,797,422

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 (PKR)

 

 (PKR)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share - basic and diluted

 

 9.08

 

 25.65

 

 3.09

 

 8.64

 

 

 

LUCKY CEMENT LIMITED

Condensed Interim Consolidated Statement of Financial Position

 As at March 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Un-audited)

 

 

 

(Audited)

 

 

 

 

 

 

March 31,

 

 

 

June 30,

 

 

 

 

 

 

2020

 

 

 

2019

 

 

 

 

 

 

 (PKR in '000')

 

ASSETS

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

Fixed assets

 

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 178,659,389

 

 

 

135,475,796

 

 

Intangible assets

 

 7,419,549

 

 

 

 7,653,720

 

 

Right of use assets

 

 

 216,195

 

 

 

 -

 

 

 

 

 

 

 186,295,133

 

 

 

143,129,516

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term investments

 

 22,276,009

 

 

 

 18,554,210

 

 

Long-term loans and advances

 

 615,517

 

 

 

 551,354

 

 

Long-term deposits and prepayments

 

 54,473

 

 

 

 51,076

 

 

 

 

 

 

 209,241,132

 

 

 

162,286,156

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

Stores, spares and consumables

 

 9,209,749

 

 

 

 8,193,401

 

 

Stock-in-trade

 

 

 20,113,865

 

 

 

 18,299,229

 

 

Trade debts

 

 

 6,009,864

 

 

 

 4,508,468

 

 

Loans and advances

 

 

 2,252,453

 

 

 

 1,997,339

 

 

Trade deposits and short-term prepayments

 

 1,580,020

 

 

 

 2,092,112

 

 

Other receivables

 

 

 7,460,469

 

 

 

 6,935,242

 

 

Tax refunds due from the Government

 

 538,812

 

 

 

 538,812

 

 

Taxation receivable

 

 

 2,131,056

 

 

 

 2,687,513

 

 

Accrued return

 

 

 114,364

 

 

 

 156,948

 

 

Short term investments

 

 

 2,917,749

 

 

 

 1,055,754

 

 

Cash and bank balances

 

 23,129,582

 

 

 

 18,270,313

 

 

 

 

 

 

 75,457,983

 

 

 

 64,735,131

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 284,699,115

 

 

 

 227,021,287

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

 

 

 

 

SHARE CAPITAL AND RESERVES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital

 

 

 3,233,750

 

 

 

 3,233,750

 

Reserves

 

 

 

 108,755,713

 

 

 

 105,787,478

 

 

 

 

 

 

 

 

 

 

 

 

 

Attributable to the owners of the Holding Company

 

 111,989,463

 

 

 

 109,021,228

 

 

Non-controlling interests

 

 17,575,976

 

 

 

 16,249,228

 

 

Total equity

 

 

 129,565,439

 

 

 

 125,270,456

 

 

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term finances

 

 

 69,904,395

 

 

 

 32,771,993

 

 

Long-term deposits

 

 

 230,597

 

 

 

 90,264

 

 

Deferred liabilities

 

 

 11,225,328

 

 

 

 11,431,338

 

 

Lease Liabilities

 

 

 178,620

 

 

 

 -

 

 

Other long term liabilities

 

 5,289,042

 

 

 

 5,078,003

 

 

 

 

 

 

 86,827,982

 

 

 

 49,371,598

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

Current portion of long-term finances

 

 1,551,006

 

 

 

 1,694,503

 

 

Trade and other payables

 

 48,061,360

 

 

 

 36,059,184

 

 

Provision for taxation

 

 

 1,865,540

 

 

 

 1,699,742

 

 

Accrued return

 

 

 347,602

 

 

 

 619,500

 

 

Short-term borrowings and running finance

 

 16,272,116

 

 

 

 12,161,232

 

 

Current portion of liabilities against assets subject to finance lease

 

 39,845

 

 

 

 -

 

 

Unclaimed dividend

 

 

 144,519

 

 

 

 53,953

 

 

Unpaid dividend

 

 

 23,706

 

 

 

 91,119

 

 

 

 

 

 

 68,305,694

 

 

 

 52,379,233

 

 

 

 

 

 

 155,133,676

 

 

 

 101,750,831

 

CONTINGENCIES AND COMMITMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL EQUITY AND LIABILITIES

 

 284,699,115

 

 

 

 227,021,287

 

 

 

 

LUCKY CEMENT LIMITED

 

 

Condensed Interim Consolidated Statement of Profit or Loss and Other Comprehensive Income

 

 

 For the 3rd quarter and nine months ended March 31, 2020 (Un-audited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

Quarter Ended

 

 

 

 

March 31,

 

March 31,

 

March 31,

 

March 31,

 

 

 

 

2020

 

2019

 

2020

 

2019

 

 

 

 

 (PKR in '000')

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 123,988,042

 

 103,320,389

 

 44,429,995

 

 35,466,328

 

Less: Sales tax and excise duty

 

 24,234,883

 

 16,764,874

 

 8,783,377

 

 5,463,025

 

 

    Rebates, incentives and commission

 

 5,319,131

 

 4,489,902

 

 1,951,896

 

 1,657,541

 

 

 

 

 29,554,014

 

 21,254,776

 

 10,735,273

 

 7,120,566

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 94,434,028

 

 82,065,613

 

 33,694,722

 

 28,345,762

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales

 

 (79,678,132)

 

 (63,799,985)

 

 (28,585,408)

 

 (21,779,033)

 

 

Gross profit

 

 14,755,896

 

 18,265,628

 

 5,109,314

 

 6,566,729

 

 

Distribution cost

 

 (5,799,983)

 

 (4,296,137)

 

 (2,050,617)

 

 (1,458,307)

 

 

Administrative expenses

 

 (3,185,645)

 

 (2,308,421)

 

 (1,147,744)

 

 (776,794)

 

 

Finance cost

 

 (2,015,548)

 

 (1,151,277)

 

 (830,024)

 

 (376,944)

 

 

Other expenses

 

 (603,830)

 

 (1,313,476)

 

 (208,580)

 

 (411,496)

 

 

Other income

 

 4,066,636

 

 3,061,838

 

 1,274,347

 

 1,138,122

 

 

Profit before taxation

 

 7,217,526

 

 12,258,155

 

 2,146,696

 

 4,681,310

 

 

Taxation

 

 

 

 

 

 

 

 

 

 

   - current

 

 (2,005,596)

 

 (3,332,147)

 

 (603,474)

 

 (1,209,033)

 

 

   - deferred

 

 469,905

 

 1,071,569

 

 215,798

 

 388,038

 

 

 

 

 (1,535,691)

 

 (2,260,578)

 

 (387,676)

 

 (820,995)

 

 

Profit after taxation

 

 5,681,835

 

 9,997,577

 

 1,759,020

 

 3,860,315

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

 

Owners of the Holding Company

 

 4,650,969

 

 9,260,243

 

 1,438,851

 

 3,464,738

 

 

Non-controlling interests

 

 1,030,866

 

 737,334

 

 320,169

 

 395,577

 

 

 

 

 5,681,835

 

 9,997,577

 

 1,759,020

 

 3,860,315

 

                                     

 

 

 

 

Other comprehensive income for the period

 

 

 

 

 

 

 

Other comprehensive (loss) / income which may be

reclassified to statement of profit or loss in subsequent periods

 

 

 

Foreign exchange differences on translation of foreign operations

 

 557,938

 

 1,339,539

 

 933,363

 

 138,983

 

Other comprehensive (loss) / income which will not be reclassified to statement of profit or loss in subsequent periods

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized (loss) / gain on remeasurement of equity investment at fair value through other comprehensive income

 

 (9,027)

 

 (5,912)

 

 (8,107)

 

 5,026

 

Deferred tax thereon

 

 1,354

 

 887

 

 1,216

 

 (753)

 

 

 

 (7,673)

 

 (5,025)

 

 (6,891)

 

 4,273

 

Total comprehensive income for the period

 

 6,232,100

 

 11,332,091

 

 2,685,492

 

 4,003,571

 

 

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

 

Owners of the Holding Company

 

 5,201,234

 

 10,594,757

 

 2,365,323

 

 3,607,994

 

Non-controlling interests

 

 1,030,866

 

 737,334

 

 320,169

 

 395,577

 

 

 

 6,232,100

 

 11,332,091

 

 2,685,492

 

 4,003,571

 

 

 

 

 

 

 

 

 

 

 

 

 (PKR)

 

 (PKR)

 

Earnings per share - basic and diluted

 

 14.38

 

 28.64

 

 4.45

 

 10.71

 

 

Directors' Report

 

The Directors have the pleasure in presenting to you the financial results of your Company which include both, stand-alone and consolidated financial statements for the nine months ended March 31, 2020.

 

Overview

 

Cement industry in Pakistan grew by 7.1% to 37.04 million tons during the nine months ended March 31, 2020 in comparison to 34.58 million tons during the same period last year. Local sales volume registered a growth of 3.9% to 30.59 million tons during the current nine months in comparison to 29.44 million tons during the same period last year. Export sales volumes registered an increase of 25.7% to 6.45 million tons during the nine months under review as compared to 5.13 million tons reported in the same period last year.

In comparison to the Cement Industry, your Company's overall sales volumes declined by 2.6% to 5.80 million tons during the current nine months ended March 31, 2020. This was due to decline in local sales volumes by 7.0% which were 4.11 million tons in comparison to 4.42 million tons during the same period last year, due to competition arising from new capacities coming online. On the other hand, export sales volumes of the Company improved by 10.4% to 1.69 million tons as compared to 1.53 million tons during the same period last year.

 

On a consolidated basis, your Company achieved a gross turnover of PKR 123.99 billion which is 20.0% higher as compared to the same period last year's turnover of PKR 103.32 billion. The increase in turnover is mainly attributable to commencement of operations of KIA Lucky Motors.

 

Moreover, consolidated Net Profit of the Company was PKR 5.68 billion of which PKR 1.03 billion is attributable to non-controlling interests which translates into an EPS of PKR 14.38 during the current nine months ended March 31, 2020 as compared to PKR 28.64 during the same period last year.

 

Business Performance

 

a.   Production & Sales Volume Performance - Standalone

 

The standalone production and sales statistics of your Company for the nine months ended March 31, 2020, compared to the same period last year are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

Clinker Production

5,058

5,448

(7.2%)

Cement Production

4,969

5,183

(4.1%)

Cement Sales

4,964

5,183

(4.2%)

Clinker Sales

837

771

8.6%

 

The production and sales volume data is graphically presented as under:

 

A comparison of the dispatches of the Industry and your Company's standalone business for the nine months ended March 31, 2020 compared  with the same period last year is presented below:

 

 

Financial Performance - Standalone

 

The standalone financial performance of your Company for the nine months ended March 31, 2020, as compared to the same period last year is presented below:

 

 

 

 

 

Revenue

During the nine months of 2019-20 under review, your Company's overall gross sales revenue declined by 8.3% as compared to the same period last year. Where, although the export sales revenue showed an increase of 18.6% (PKR 9.87 billion vs PKR 8.32 billion) but the local sales revenue decline of 13.4% (PKR 38.08 billion vs PKR 43.99 billion) lead to the overall drop of 8.3% in the gross sales revenue.

 

This was mainly due to lower sales volumes as a result of competition arising from new capacities and low retentions due to higher transportation and logistics costs.

 

 

Cost of Sales

Moreover, during the nine months under review, per ton cost of sales of your Company increased by 9.1% as compared to the same period last year. The increase was mainly attributable to exceptional increase in gas and other fuel prices, higher fixed costs absorption (due to lower volumes) and higher transportation costs on input materials.

     

 

Gross Profit

In view of the lower sales volumes & retentions and higher input costs, as mentioned above, Gross profit margins of the company for the nine months under review were 13.9% as compared to 30.0% reported during the same period last year.

 

Net Profit

 

Similarly, your Company achieved a profit before tax of PKR 3,278.3 million during the nine months under review as compared to PKR 9,750.4 million reported during the same period last year.

 

Accordingly, after tax profit of PKR 2,935.4 million was achieved during the nine months under review as compared to PKR 8,293.9 million reported during the same period last year.

 

 

 

Earnings per share

 

As a result of factors discussed above, the earnings per share of your Company for the nine months ended March 31, 2020 was PKR 9.08 in comparison to PKR 25.65 reported during the same period last year.

 

Projects - New and Ongoing

 

 

Investments

 

Investment in 1 x 660 MW, supercritical, coal based power project

 

The construction activity for setting up 660 MW super critical, lignite coal-based power plant was moving as per Schedule before the outbreak of COVID-19 in China with the targeted Commercial Operation on 1st March, 2021. On 6th February 2020, the Construction and Supply Contractors of the Company declared other Force Majeure Event (FME) under the provisions of their respective agreements due to outbreak of COVID-19 and notified that there is possible risk of delay in Project implementation.  On 27th March, 2020, the Company also received FME notice on the same account from Central Power Purchasing Agency (CPPA) notifying possible delay in COD of Lahore Matiari transmission Line and thus may cause delayed provision of interconnection facility which is required to be provided by CPPA not later than 120 days prior to Commercial Operation Date. The precise assessment of FME on the project commercial operation timeline could not be made at this stage as FME is still in place. However, the Company in coordination with its Contractors and the CPPA is taking mitigating measures to contain the delay.

 

Greenfield cement plant expansion in Samawah, Iraq - 1.2 million tons per annum

 

While major shipments of plant and machinery have reached site and erection work is under progress, some critical refractory, mechanical and electrical items are however under shipment and will reach during the month of June as per current understanding with the suppliers. Other necessary materials and resources are available at SITE and work is in progress during the locked down period arising out of COVID 19 pandemic situation.

As earlier envisaged, project completion is still targeted in the 2nd quarter of financial year 2020-21. However, if the situation of COVID 19 pandemic worsens, project completion timelines would be delayed.

 

Corporate Social Responsibility

 

With a primary focus on Education, Women empowerment, Health and Environment conservation, your Company is committed for the development of society and the communities in which it operates.

Education / Scholarships

In continuation of its long-term objective to provide merit-based support for the deserving and less privileged segments of the society, your Company continued to extend scholarships to various students of leading universities in Pakistan and abroad.

 

Women Empowerment

To empower women through education has been an ongoing process with the collaboration of Zindagi Trust in which your Company has been supporting two leading Government girls' schools in Karachi. These schools have been transformed into model girls' educational institutions in Pakistan.

 

Health Initiatives

Provision of quality healthcare for the society at large continues to remain your Company's priority, especially through financial support of Aziz Tabba Foundation; a prominent philanthropic institution that is running Tabba Heart and Tabba Kidney institutes, which provide vital support in bridging the gap of specialized and modern medical care available in the Country.

 

Environment Conservation

Your Company always takes responsibility towards the environment seriously and in an effort to highlight the importance of environment conservation; your Company continued with its pro-environment initiatives including tree-plantation drives in and around its manufacturing sites.

 

Outlook

 

Post relaxation of COVID-19 lockdown in the North, dispatches have reached 80% of pre-lockdown volumes. Dispatches in the South however continue to suffer due to lock down in Sindh province and are at one third of normal volumes. Export volumes are also very thin due to low demand from foreign buyers.

 

Based on the demand projections in North and the fact that majority of players are presently operating in losses, management expects that the prices in North will recover. In South due to lower economic activity as a result of COVID-19 lock down, volumes will remain under pressure. However, once the pandemic situation eases, we also expect that the package announced for the construction industry by the Federal Government will have a positive impact on the cement demand.

Acknowledgement

 

Directors of your Company take this opportunity to express sincere gratitude and appreciation for unrelenting commitment and contribution of its people and the trust and confidence placed in the Company by all the stakeholders.

 

 

On behalf of the Board

 

 

 

 

 

MUHAMMAD YUNUS TABBA                           MUHAMMAD ALI TABBA

Chairman / Director                                                   Chief Executive / Director

 

 

 Click on, or paste the following link into your web browser, to view the associated PDF.
 http://www.rns-pdf.londonstockexchange.com/rns/8211K_1-2020-4-24.pdf

 

Karachi: April 23, 2020


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