Financial Statement Analysis of Lucky cement
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Transcript of Financial Statement Analysis of Lucky cement
FINANCIAL STATEMENT ANALYSIS
FINANCIAL STATEMENT ANALYSIS
Muhammad Umair 1411129Faraz Maroof 1411128
GROUP-B
INTRODUCTIONLucky Cement Limited was founded in 1993
by Tabba Memons. The company initially started with factories in the Pezu district of the North West Frontier Province (N.W.F.P). It now, also,
owns a factory in Karachi.
Lucky Cement Limited recorded its highest ever profit after tax of Rs 11.344 billion for the year
ending 30 June 2014.
HistoryLucky cement Sponsored by well known “Yunus Brothers Group” – one of the largest export houses of Pakistan, Lucky Cement Limited currently has the capacity of producing 25,000 tons per day of dry process Cement. Lucky Cement Limited (LCL) is Pakistan’s largest producer and leading exporter of quality cement with the production capacity of 7.75 million tons per annum. The company is listed on Karachi, Lahore, Islamabad and London Stock Exchanges. Over the years, the Company has grown substantially and is expanding its business operations with production facilities at strategic locations in Karachi to cater to the Southern regions, Pezu and Khyber Pakhtunkhwa to furnish the Northern areas of the country. Lucky Cement is Pakistan’s first company to export sizeable quantities of loose cement being the only cement manufacturer to have its own loading and storage terminal at Karachi Port. Lucky Cement has a network of over 200 dealers which enables it to dominate the local market and is Pakistan’s first company to export sizeable quantities of loose cement and is the only cement manufacturer to have its own loading and storage terminal at Karachi Port.
Groups of Yunus Brothers
The following companies are part of the Yunus Brothers Group:
Yunus Brothers (YB) 1962In 1962, Yunus Brothers Group started as a trading house; exporting cotton yarn to Far-Eastern countries and gradually added other commodities in its business portfolio. It holds a strong reputation in provision of high quality products; accompanied with reliability and excellent customer services.
Lucky Textile Mills Limited (LTML) 1983Lucky Textile Mills Limited took off as a fabric manufacturing concern in 1983. However, it modified its operations and has currently transformed into a vertically integrated mill, having an annual production capacity of 60 Million meters. LTML has also exported its products and enjoys a strong presence in the international markets.
Aziz Tabba Foundation (ATF) 1987Social activism has always been a hallmark of YB Group. Aziz Tabba Foundation, started in 1983, serves as a testimony to the philanthropic spirit of the Company’s founders. The Foundation carries out various activities for the social welfare of the community in areas of health, education and enhancement of economic prosperity.
Groups of Yunus Brothers
Fazal Textile Mills Limited
(FTML) 1962Fazal Textile Mills Limited is one of the top spinning mills in the country. It specializes in producing Cotton Ring Spun Yarn. FTML is equipped with state-of-the-art machinery from world’s renowned textile machinery manufacturers & has the capacity to produce around 150 Metric tons of yarn daily
Gadoon Textile Mills Limited (GTML) 1988Established in 1988, Gadoon Textile Mills aim was to provide employment to the local natives of the Swabi District that used to rely on cultivation of poppy and opium on their lands for achieving their livelihood. Thus, not limited to a profit-making venture, GTML has a socially motivated reason as its essence. GTML holds the distinction of being the second largest textile mill in the world to introduce Compact Core Spun Yarn. However, in Pakistan, it’s the largest spinning unit with an approximate number o200,000 spindles under f one roof.
Lucky Cement Limited (LCL) 1993Lucky Cement Limited is Pakistan’s largest Cement Manufacturing Company with an annual production capacity of 7.75 million tons. LCL is also Pakistan’s first and largest exporter of loose cement and is the only cement manufacturer to have a loading and storage terminal at the Karachi Port. Other exclusive attributes that allow Lucky Cement to stand ahead of its competitors are its unique supply chain function with specialized loose cement carriers and shiploaders.
Groups of Yunus Brothers
ICI Pakistan Limited
(ICIP) 2012Consequent to the acquisition of ICI Omicron B.V. shareholding by Lucky Holdings Limited in 2012, it is part of the Yunus Brothers Group. ICI Pakistan (formerly ICI Omicron B.V.) manufactures and trades in a diversified range of products including Polyester Staple Fiber, Soda Ash and Specialty Chemicals. It also markets toll manufactured Pharmaceuticals and Animal Health products along with a range of Chemicals, Field Crop Seeds, Vegetable Seeds and other Agri Products. Its four businesses, Soda Ash, Polyester, Life Sciences and Chemicals manufacture and sell a wide range of industrial and consumer products.
Lucky Energy Private Limited (LEPL) 1993In 1993, YB Group diversified in the energy sector with the establishment of Lucky Energy, a gas-based thermal power generation unit. It is equipped with one of the most sophisticated and highly-efficient generators from Caterpillar, USA. LEPL not only fulfills energy requirements of the Group companies but also sells electricity to the Government of Pakistan.
Aziz Tabba Kidney Centre
(ATKC) 1995Aziz Tabba Kidney Centre is a centre of excellence that provides cost-effective and state-of-the-art dialysis facilities to the underprivileged sections of the society. ATKC is also the only centre in Karachi where Hepatitis B (HB) positive patients are treated separately.
Groups of Yunus Brothers
Yunus Textile Mills Limited
(YTML) 1998Yunus Textile Mills Limited is the producer and exporter of home textiles and beddings accessories. It is a fully vertically-integrated textile manufacturing facility, from spinning to stitching, with the annual production capacity of 100 million meters. Although, the manufacturing facility is based in Karachi, the Company has its distribution units in USA, Canada, France, United Kingdom and Spain.
Tabba Heart Institute
(THI) 2005Tabba Heart Institute, a state-of-the-art, yet not-for-profit cardiac hospital, was established with the aim to provide quality services and compassionate care at an affordable cost. THI is a 120–bed cardiac unit equipped with modern and up to date equipment, with renowned cardiologists and cardiac surgeons.
Lucky Commodities Private Limited (LCPL) 2013Lucky Commodities Private Limited (LCPL) is one of the leading importers of coal in Pakistan and at present the largest importer of South African Coal. Last year, it catered to approximately 30% of Pakistan’s coal market by providing the best quality coal to more than 150 companies in the country. Under the brand umbrella of Yunus Brothers, the company provides high quality standardized coal to its customers for fulfilling their energy requirements. Having begun with a focus on coal, it now plans to expand its trade activities in other energy resources and dry bulk commodities. In a short span of time, Lucky Commodities has acquired a significant share of Pakistan’s coal market.
Our Vision
We envision being the leader of the cement industry in Pakistan, identifying and capitalizing on new opportunities in the global market, contributing towards industrial progress and sustainable future, while being responsible corporate citizens.
Mission StatementOur mission is to be a premium cement manufacture by building a professional organization, having state-of-the-art technology, identifying new prospects to reach globally and maintain service and quality standards to cater to the international construction needs with an environment-friendly approach.
Certification
Lucky Cement is an ISO 9001:2008 and 14001:2004 certified companies and also possesses many other international certifications including Bureau of Indian Standards, Sri Lankan Standard Institute, Standards Organization of Nigeria, Kenya Bureau of Standards and South African Bureau of Standards.
Awards AccoladesLucky Cement Limited has won frequent tributes for its business and social accomplishments during the year:ENVIRONMENT EXCELLENCE AWARDLucky Cement won the ‘10th Annual Environment Excellence Award’ for its pro-environment initiatives including the installation of the Waste Heat Recovery Plant, Refused Derived Fuel and Tyre Derived Fuel projects at its production facilities. The National Forum for Environment & Health awarded Lucky Cement for its extensive participation in various community based environmental programs including the association with the President of Pakistan’s Forestation Program.BEST SUSTAINABILITY REPORT AWARD FOR 2012Lucky Cement Limited received the award for its sustainability disclosures in ‘Active Sustainability Report 2012’ publishing best Corporate and Sustainability Reports for the year 2012. The prestigious awards are held every year by the Institute of Chartered Accountants of Pakistan and Institute of Cost and Management Accountants of Pakistan. The Lucky Cement Limited is the first and only Company in Pakistan to receive level check A+ from the Global Reporting Initiative, Netherlands, on its report.GOLD MEDAL FOR ‘BUSINESSMAN OF THE YEAR’Mr. Muhammad Ali Tabba, Chief Executive of Lucky Cement Limited received the “Business Man of The Year Gold Medal Award” from Karachi Chamber of Commerce for his remarkable performance in the export of cement. The Company recorded exports of Rs. 14.7 Billion for the year 2012-13. Lucky Cement has successfully exported its cement to more than 35 international markets including India, Afghanistan, Sri Lanka, Iran, Egypt, Bahrain and South Africa. The Company is also considered to be the first Pakistani Company to export loose cement from its state-of-the-art logistic terminal at the Karachi port.
Awards AccoladesLucky Cement Limited has won frequent tributes for its business and social accomplishments during the year:
RANKED IN THE TOP-FIVE PHILANTHROPIC COMPANIES BY PAKISTAN CENTRE FOR PHILANTHROPYLucky Cement was ranked in the top-five public-listed companies that contributed record donations for improving the social livelihood in Pakistan. The ranking compiled by Pakistan Centre for Philanthropy proves to be a testimony for Lucky Cement’s commitment towards social responsibility. KPK CHAMBER OF COMMERCE AND INDUSTRYLucky Cement Limited has once again secured the KPK Chamber of Commerce and Industry award for the top export and sales tax contribution to the national exchequer for the year 2013. Lucky Cement proved to be the most affluent industrial player in the province by winning consecutive awards in the below mentioned categories over several years: • Top Sales Tax Payer• Top Income Tax Payer• Top Exporter BRAND OF THE YEAR AWARDLucky Cement Limited was declared as the Brand of the Year-2013 in the category of cement. His award represents our strong brand popularity, product availability and consistency.
Challenges
High cost of Energy Heavy Taxation High freight charges Fluctuating Interest rates Declining international market share Stagnant domestic consumption: GDP & Cement consumption
Products and BrandsThe company is producing different variations of Ordinary Portland Cement and Sulphate Resistant Cement to meet needs of a wide range of customers. The company currently produces the following brands of cement.
Lucky Cement (Regular): Lucky Cement (Regular) is our OPC brand and sells primarily in the North region markets of Pakistan.
Lucky Sulphate Resistant Cement:Developed specially for use along shorelines and canal-linings, Lucky SRC sells across the entire country.
Lucky Block Cement: Developed specially for block makers with quick setting time, Lucky Block Cement is an OPC product which sells primarily in the Karachi market.
Lucky Raj:In order to attract the price conscious consumer, Lucky Raj is an OPC product introduced in the Karachi markets.
Lucky Star: Lucky Star is our OPC brand which sells primarily in the South region markets of Pakistan.
Lucky Gold: Lucky Gold is our OPC brand which was introduced to penetrate into the Faisalabad market and which now sells primarily in Faisalabad and surrounding areas.
Statement of Production Capacity
S.No Name of Unit Cement Capacity (Metric Tons)
1 Lucky Cement Limited (Pezu & Karachi) 7,512,000.00 2 Bestway Cement Limited (Hattar & Chakwal) 5,915,250.00 3 D.G.Khan Cement Limited - (D.G.Khan Chakwal) 4,221,000.00 4 Fauji Cement Company Limited - (Fateh Jang) 3,433,500.00 5 Maple Leaf Cement Factory Limited - (Daudkhel) 3,370,500.00 6 Askari Cement - (Wah & Nizampur) 2,677,500.00 7 Kohat Cement Company Limited - (Kohat) 2,677,500.00 8 GharibWal Cement Limited - (Jehlum) 2,110,500.00 9 Lafarge Pakistan Cement Company Limited - (Chakwal) 2,047,500.00
10 Pioneer Cement Limited - (Khushab) 2,030,250.00 11 Dewan Hattar Cement Limited - (Hattar & Dhabeji) 1,921,500.00 12 Attock Cement (Lasbela) 1,795,500.00 13 Flying Cement (Lilla) 1,197,000.00 14 Cherat Cement (Nowshera) 1,102,500.00 15 Al-Abbas Cement (Dadu) 945,000.00 16 Fecto Cement (Sangjani) 819,000.00 17 Dandot Cement (Jhelum) 504,000.00 18 Thatta Cement (Thatta) 488,250.00
TOTAL 44,768,250.00
Local and International MarketThe Company has a well-established distribution network in Pakistan, making the quality products of Lucky Cement available from Karachi to Kashmir and from Gwadar to Gilgit. In addition to the local market, the Company has successfully established a well-diversified export market to mitigate the risk of shortfall in local sales. Our high quality cement has been exported to the following countries over the years:
Our brands are recognized and known as high quality products amongst their customers.
Asia:• India• Sri Lanka• Central Asian countries
Africa:• Tanzania• Madagascar• Mozambique• South Africa• Seychelles• Comoros• Kenya
ExportsBeing Pakistan’s largest exporter, Lucky Cement Limited has met the standards of more than 22 countries and has exported around 1.65 million tons to over 22 countries of South East and Middle East Asia and the African subcontinent. The company has been the largest exporter of cement to the African region since 2009. Lucky Cement’s total export sales of cement grew by 1.7 per cent to 2.29 million tons during the year 2013. Lucky Cement Limited pioneered the export of cement in Pakistan and is the only cement manufacturer to have a loading and storage terminal at Karachi Port. This state-of-the-art project is based on the latest European technology having a capacity of carrying 75 tons of cement and is the first of its kind in South East Asia and Middle East regions. This logistics setup at the Port helps in reducing the vessels idle time making the shipments as fast as possible. Our installed cement storage silos at this facility are capable of storing 24000 tons of cement. Automatic ship loaders work at fast discharge rates of 12,000 tons.
MARKET CONTRIBUTION IN CEMENT
INDUSTRY Lucky Cement
20%
D.G Khan Cement
15%
Bestway Cement
11%Maple Leaf10%
Lafarge Cement
6%
Attock Cement6%
Kohat Cement5%
Pioneer Cement
4%
Other Cement23%
KEY FIGURES AND HIGHLIGHTSTOTAL REVENUERs in million (2013: 37,810.5)
EBITDARs in million (2013: 14,297.5)
PROFIT AFTER TAXRs in million (2013: 9,748.8)
EARNING PER SHARESRs (2013: 30.15)
BOOK VALUE PER SHARERs (2013: 126.9)
CURRENT RATIOTimes (2013: 3.38:1)
PRICE/EARNINGS RATIOTime (2013: 6.96)
43,083.2
16,621.0
11,344.4
35.08
154.0
4.37:1
11.70
PROFI
T &
LOSS
A/C
)
PROFIT AND LOSS ACCOUNTNote 2014 2013 2012 2011
-------------- Rupees in '000' -------------- Gross Sales 25 51,412,926 43,738,002 39,123,147 31,767,053 Less: Sales tax and Excise duty 7,708,848 5,547,756 5,485,629 5,545,549 Rebates Commission 620,909 379,790 314,983 203,985
8,329,757 5,927,546 5,800,612 5,749,534 Net Sales 43,083,169 37,810,456 33,322,535 26,017,519 Cost of Sales 26 (24,393,064) (21,054,058) (20,601,261) (17,306,400)Gross Profit 18,690,105 16,756,398 12,721,274 8,711,119 Distribution Costs 27 (3,382,156) (3,664,019) (3,236,721) (3,236,425)Administrative expenses 28 (760,269) (680,347) (474,135) (313,389)Finance costs 29 (34,225) (75,829) (253,234) (517,788)Other charges 30 (1,035,032) (824,834) (438,411) (325,482)Other income 31 977,942 234,499 5,204 2,486
(4,233,740) (5,010,530) (4,397,297) (4,390,598)Profit before taxation 14,456,365 11,745,868 8,323,977 4,320,521 Taxation - Current (2,890,619) (269,494) (333,225) (260,175)Taxation - Deferred (221,343) (1,727,612) (1,208,336) (89,946)
32 (3,111,962) (1,997,106) (1,541,561) (350,121)Profit after taxation 11,344,403 9,748,762 6,782,416 3,970,400 Other Comprehensive income not to be reclassified to profit and loss account in subsequent period:
Loss on remeasurement of post retirement benefit obligations (912) (45,334) - - Deferred taxation 249 10,520 - -
(663) (34,814) - - 11,343,740 9,713,948
(Rupees) Earnings per Share - basic and diluted 33 35.08 30.15 20.97 12.28
BACK
2011 2012 2013 2014 -
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00 GROSS SALES
63%
37%
67%
33%
66%
34%
30%
70%
BALA
NCE
SHEE
T
BALANCE SHEETNote 2014 2013 2012 2011
------------------------------- Rupees in '000' ----------------------------
ASSETSNON-CURRENT ASSETSFixed Asset
Property, plant and equipment 5 31,937,211 31,008,392 31,016,532 31,705,156
Intangible Assets 6 27,652 4,711
1,514 1,685
31,964,863
31,013,103
31,018,046 31,706,841
Long term Investment 7 8,127,550
5,619,000
Long term loans and advances 8 72,445
554,305 55,373
55,373
Long term deposits 3,175
3,175
3,175 3,175
40,168,033 37,189,583 31,076,594 31,765,389 CURRENT ASSETS
Stores and spares 9
6,078,915
5,179,055 5,396,220 6,313,584 Stock-in-trade 10 1,638,984 1,431,157 1,276,433 1,248,538
Trade debts 11
2,077,714
1,668,299 1,050,639 620,961
Loans and advances 12
161,625
253,266 148,189 72,164
Trade deposits and short-term prepayment 13 57,699
41,814 67,894 38,669
Other receivables 14
527,052
692,191 105,677 218,884 Investments 110,062
Tax refunds due from Government 15
538,812
538,812 538,812 538,812
Taxation - net
- 286,096
126,361 41,652
Cash and bank balances 16
8,519,082
2,805,840 844,422 351,202 19,599,883 13,006,592 9,554,647 9,444,466
TOTAL ASSETS 59,767,916 50,196,175 40,631,241 41,209,855
BALANCE SHEETNote 2014 2013 2012 2011
------------------------------- Rupees in '000' ----------------------------
EQUITY AND LIABILITIESSHARE CAPITAL AND RESERVES
Share Capital 17 3,233,750 3,233,750
3,233,750 3,233,750
Reserves 18 46,558,433
37,801,693 30,027,995 24,539,079
49,792,183 41,035,443 33,261,745 27,772,829
NON-CURRENT LIABILITIES
Long-term finance 19 -
127,498 392,898 658,298
Long-term Deposits 20 67,971
57,125 52,752 37,306
Deferred liabilities 21 5,453,512
5,130,265 3,299,522 2,044,633
5,521,483 5,314,888 3,745,172 2,740,237 CURRENT LIABILITIES
Trade and other payables 22 4,096,255
3,572,282 3,345,605 4,043,689
Taxation – net 257,446
Accrued mark-up 23 3,051
8,162 13,319 85,448
Short-term borrowings 6,302,252
Current maturity of long term finance 19 127,498 265,400 265,400 265,400
4,484,250 3,845,844 3,624,324 10,696,789
TOTAL EQUITY AND LIABILITIES 59,797,916 50,196,175 40,631,241 41,209,855
FINAN
CIAL
STAT
EMEN
T
ANAL
YSIS
FINANCIAL STATEMENT ANALYSISFinancial statements analysis is the process of examining relationships among elements of the company's "accounting statements" or financial statements (balance sheet, income statement, statement of cash flow and the statement of retained earnings) and making comparisons with relevant information.
Financial statements analysis is a valuable tool used by investors, creditors, financial analysts, owners, managers and others in their decision-making process.
The most common known types of financial statements analysis are:
Ratio Analysis: compare items on a single financial statement or examine the relationships between items on two financial statements.
Horizontal Analysis: financial information are compared for two or more years for a single company;
Vertical Analysis: each item on a single financial statement is calculated as a percentage of a total for a single company;
Trend analysis: is a method of analysis that allows traders to predict what will happen with a stock in the future.
RATI
O AN
ALYS
IS
RATIO ANALYSIS
RATIO ANALYSIS
Acid TestCurrent Ratio
BACK
CURRENT RATIO
The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months. It compares a firm's current
assets to its current liabilities.
2014 2013 2012 2011
Current Ratio =Total Current Asset 19,599,883 13,006,592 9,554,647 9,444,466
Total Current Liabilities 4,484,250 3,845,844 3,624,324 10,696,789
4.37:1 3.38:1 2.64:1 0.88:1
Comments Here :Entity has sufficient resources to meet its current obligations. In fact company has current asset 4 time greater than current liability that shows company has sound liquidity position. Further it also indicates company is following a conservative approach towards its fund as sufficient are idle that can be invested in profitable arena.
BACK
ACID TEST RATIO
The acid test of finance shows how well a company can quickly convert its assets into cash in order to pay off its current liabilities. It also shows the level of quick
assets to current liabilities.
2014 2013 2012 2011
Acid Test Ratio =Total Current Asset -
Inventory - Prepaid Expense 11,881,984 6,396,380 2,881,994 1,882,344
Total Current Liabilities 4,484,250 3,845,844 3,624,324 10,696,789
2.65 1.66 0.80 0.18
Comments Here :Its shows company has ability to meet its current obligation with further delay of time as inventory and prepayments are not constituting sufficient portion of current assets. From Business point of view it can provide company a competitive edge.
BACK
RATIO ANALYSIS
Asset TurnoverStock Turnover Debtor Days
BACK
ASSET TURNOVERThe Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating sales revenue or sales income to the company. Companies with low profit margins tend to have high asset turnover, while those with high profit margins have low asset turnover.
2014 2013 2012 2011
Asset Turnover =Net Sales 43,083,169 37,810,456 33,322,535 26,017,519
Total Average Assets 59,797,916 50,196,175 40,631,241 41,209,855
0.72 0.75 0.82 0.63
Comments Here :Its shows company is generating Rs. 0.72 revenue per rupees of Assets of the company which is highest Asset efficiency ratio is cement industry.
BACK
STOCK TURNOVER RATIO
The Stock Turnover Ratio is a measure of the number of times inventory is sold or used in a time period such as a year. The equation for inventory turnover equals the Cost of goods sold divided by the average inventory.
2014 2013 2012 2011
Stock Turnover Ratio =Cost of Goods Sold 24,393,064 21,054,058 20,601,261 17,306,400
Average Inventory 7,164,056 6,641,433 7,117,388 6,089,612
3.40 3.17 2.89 2.84
Comments Here :It measure liquidity of inventory which is in running trend a positive stance for the company. on other hand its also shows inefficient buying of inventory. If the company buys in bulk it will reduce transportation cost subject to maintaining a balance between transportation and holding cost.
BACK
DEBTORS DAYS
Debtors Days ratio measures how quickly cash is being collected from debtors. The longer it takes for a company to collect, the greater the number of debtors days
2014 2013 2012 2011
Debtors Days =Average Trade
Receivable ×365 Days1,873,007 1,359,469 835,800 700,133
Annual Credit Sales 43,083,169 37,810,456 33,322,535 26,017,519
15.87 13.12 9.15 9.82
Comments Here :Company recovery policy is highly commendable as debtors day are very low but company may also afford higher debtors days by giving relax credit term to attract more customers that will enhance its revenue.
BACK
RATIO ANALYSIS
Profit Margin
Return on Equity
Gross Profit Margin
Profit in Relation to Sales/Assets
BACK
PROFIT MARGIN
The Profit Margin is an accounting measure designed to gauge the financial health of a business or industry. In general, it is defined as the ratio of profits earned to total sales receipts (or costs) over some defined period.
2014 2013 2012 2011
Profit Margin =Net income 11,344,403 9,748,762 6,782,416 3,970,400
Net Sales (Revenue) 43,083,169 37,810,456 33,322,535 26,017,519
26.33% 25.78% 20.35% 15.26%
Comments Here :
Company has very appropriate profit margin which is consistent over the cost per and as compared to industry profit margin is very ideal in current economic conditions. Most of the companies total revenue is absurd by transportation faced and power expense under the head of cost of sales which are company's core expenses further the distributes cost is very high which can be minimized by efficient planning and process.
BACK
2009 2010 2011 2012 2013 2014 -
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
50,000,000
RELATION OF SALES AND NET INCOME
BACK
GROSS PROFIT MARGINThe Gross Profit Margin expresses the gross profit as a proportion of sales. The gross profit margin ratio is used as one indicator of a business's financial health. It shows how efficiently a business is using its materials and labour in the production process and gives an indication of the pricing, cost structure, and production efficiency of your business. The higher the gross profit margin ratio the better.
2014 2013 2012 2011
Gross Profit Margin =
Gross Profit×100
18,690,105 16,756,398 12,721,274 8,711,119
Net Sales (Revenue) 43,083,169 37,810,456 33,322,535 26,017,519
43.38% 44.32% 38.18% 33.48%
Comments Here :Gross profit shows rising trend over history but not ideal. It can further be better. Factors that contributed to improve gross profit margin are use of alternative energy sources to overcome furnace and coal usage. Also installation of waste heat recovery project helped to overcome power cost and attributed to an increase in gross profit
BACK
RETURN ON EQUITY
Return on Equity is a profitability ratio. It measures the return that an investment generates for capital contributors, i.e. bondholders and stockholders. Return on capital indicates how effective a company is at turning capital into profits.
2014 2013 2012 2011
Return on Equity =Net income
×10011,343,740 9,713,948 6,782,416 3,970,400
Shareholders Equity 49,792,183 41,035,443 33,261,745 27,772,829
22.78% 23.67% 20.39% 14.30%
Comments Here :In cement industry 25% is considered to be the most appropriate figure, The company is more close to it. It is one of the reason to attract more investor interest in the company.
BACK
RATIO ANALYSIS
Earnings per ShareDividend YieldPrice Earning RatioDividend Payout RatioDividend Cover Ratio
BACK
EARNING PER SHARES
Earnings per share (EPS) is the portion of a company's profit that is allocated to each outstanding share of common stock, serving as an
indicator of the company's profitability
2014 2013 2012 2011
Earning Per Shares =Net income - Preferred
Dividends 11,344,403 9,748,762 6,782,416 3,970,400
Common Outstanding Shares 32,337,500 32,337,500 32,337,500 32,337,500
35.08 30.15 20.97 12.28
Comments Here :
A higher EPS is the sign of higher earnings and company has strong financial position.
BACK
BACK
2009 2010 2011 2012 2013 2014
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
Earning Per Shares
PRICE EARNING RATIO
The Price Earnings Ratio (P/E) is a valuation method used to compare a company’s current share price to its per-share earnings.
2014 2013 2012 2011
Price Earning Ratio =Market Value Per Shares 410.45 209.82 115.36 70.84
Earning Per Shares 35.08 30.15 20.97 12.28
11.70 6.96 5.50 5.77
Comments Here :Earnings per share increased from Rs 5.77 in 2011 to Rs 11.70 with an increase of 103%. Company with a high P/E ratio its indicate positive future performance and investors are willing to pay more for company's shares.
BACK
DIVIDEND YIELD
A Dividend Yield expressed as a percentage of a current share price.
2014 2013 2012 2011
Dividend Yield =Cash Dividend Per
Shares 9.00 8.00 6.00 4.00
Market Value Per Shares 410.45 209.82 115.36 70.84
2.19% 3.81% 5.20% 5.65%
Comments Here :A company might be paying out a relatively high, say 25.65%, of its earnings to investors, but if the dividend payments are too low as compared to its current share price.
BACK
DIVIDEND PAYOUT RATIO
Dividend Payout Ratio the percentage of earnings paid to shareholders in dividends.
2014 2013 2012 2011
Dividend Payout Ratio =Total Dividends 2,909,839.00 2,587,321.00 1,940,449.00 1,293,556.00
Net Income 11,344,403.00 9,748,762.00 6,782,416.00 3,970,400.00
25.65% 26.54% 28.61% 32.58%
Comments Here :A low dividend payout ratio means the company is keeping a large portion of its earnings for growth in future.
BACK
DIVIDEND COVER RATIO
Dividend Cover Ratio states the number of times an organization is capable of paying dividends to shareholders from the profits earned during an accounting period.
2014 2013 2012 2011
Dividend Cover Ratio =
Profit After Tax - Dividend paid on Irredeemable
Preference Shares11,344,403.00 9,748,762.00 6,782,416.00 3,970,400.00
Dividend paid to Ordinary Shareholders 2,909,839.00 2,587,321.00 1,940,449.00 1,293,556.00
3.90 3.77 3.50 3.07
Comments Here :Companies with reinvestment opportunities and a high rate of return on assets usually keep a large portion of earnings in the business
BACK
RATIO ANALYSIS
Financial Position High gearing – Loans > Capital
Debt to Equity Ratio
BACK
DEBTS TO EQUITY RATIOThe Debt-to-Equity Ratio (D/E) is a financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets. Closely related to leveraging, the ratio is also known as Risk, Gearing or Leverage.
2014 2013 2012 2011
Debt to Equity Ratio =Total Liabilities 10,005,733 9,160,732 7,369,496 13,437,026
Share Holder Equity 49,792,183 41,035,443 33,261,745 41,209,885
0.20 0.22 0.22 0.33
Comments Here :Its depict gearing is very low and occurs stake in the company is very high. Company used to mostly retain large portion of its profit with payment of comparatively small portion as dividend. It is also evident from revenue remain of Rs. 11.9 Billion. Again the company following very conservative approach it can take more risk expose to maximize it profit.
BACK
VERT
ICAL
ANAL
YSIS
OF
(PRO
FIT
AND LO
SS A
/C)
VERTICAL ANALYSIS OF (PROFIT AND LOSS A/C)
2013-14 % 2012-13 % 2011-12 % 2010-11 %
Rupees in Million
Turnover 43,083.17 37,810.45 33,322.53 26,017.52
Cost of sales and services (24,393.06) 57% (21,054.05) 56% (20,601.26) 62% (17,306.40) 67%
Gross profit 18,690.11 43% 16,756.40 44% 12,721.27 38% 8,711.12 33%
Administrative expenses (760.27) 2% (680.34) 2% (474.14) 1% (313.39) 1%
Other Charges (4,451.41) 10% (4,564.68) 12% (3,928.37) 12% (4,079.70) 16%
Operating profit 13,478.43 31% 11,511.38 30% 8,318.76 25% 4,318.03 17%
Other Operating income 977.94 2% 234.49 1% 5.21 0% 2.49 0%
Profit before taxation 14,456.37 34% 11,745.87 31% 8,323.97 25% 4,320.52 17%
Taxation (3,111.96) 7% (1,997.11) 5% (1,541.56) 5% (350.12) 1%
Profit after taxation 11,344.41 26% 9,748.76 26% 6,782.41 20% 3,970.40 15%
HORIZO
NTAL
ANAL
YSIS
OF
(PRO
FIT
AND LO
SS A
/C)
HORIZONTAL ANALYSIS OF (PROFIT AND LOSS A/C)
2013-14 % 2012-13 % 2011-12 % 2010-11
Rupees in Million
Turnover 43,083.17 14% 37,810.45 13% 33,322.53 28% 26,017.52
Cost of sales and services (24,393.06) 16% (21,054.05) 2% (20,601.26) 19% (17,306.40)
Gross profit 18,690.11 12% 16,756.40 32% 12,721.27 46% 8,711.12
Administrative expenses (760.27) 12% (680.34) 43% (474.14) 51% (313.39)
Other Charges (4,451.41) -2% (4,564.68) 16% (3,928.37) -4% (4,079.70)
Operating profit 13,478.43 17% 11,511.38 38% 8,318.76 93% 4,318.03
Other Operating income 977.94 317% 234.49 4401% 5.21 109% 2.49
Profit before taxation 14,456.37 23% 11,745.87 41% 8,323.97 93% 4,320.52
Taxation (3,111.96) 56% (1,997.11) 30% (1,541.56) 340% (350.12)
Profit after taxation 11,344.41 16% 9,748.76 44% 6,782.41 71% 3,970.40
HORIZO
NTAL
ANAL
YSIS
OF
(BAL
ANCE
SHEE
T)
HORIZONTAL ANALYSIS OF (BALANCE SHEET)2013-14 % 2012-13 % 2011-12 % 2010-11
Assets Rs in ''000''
Non Current Assets 40,168,033 8% 37,189,583 20% 31,076,594 -2% 31,765,389 (Property Plant & Equipment, Long Term Advances, Long Term Deposits)
Current Assets 19,599,883 51% 13,006,592 36% 9,554,647 1% 9,444,466 (Stores and Spares, Investments, Cash and Bank Balances, Trade Debts, etc)
Total Assets 59,767,916 19% 50,196,175 24% 40,631,241 -1% 41,209,855
Liabilities
Non Current Liabilities 5,521,483 4% 5,314,888 42% 3,745,172 37% 2,740,237 (Long Term Finance, Deferred Liabilities, Due to Contractees, Govt. Grant etc)
Current Liabilities 4,484,250 17% 3,845,844 6% 3,624,324 -66% 10,696,789
(Current Maturity of Loan, Taxation, Trade & other payables, etc)
Total Liabilities 10,005,733 9% 9,160,732 24% 7,369,496 -45% 13,437,026
Assets less Liabilities 49,762,183 21% 41,035,443 23% 33,261,745 20% 27,772,829
HORIZONTAL ANALYSIS OF (BALANCE SHEET)
2013-14 % 2012-13 % 2011-12 % 2010-11
EQUITY Rs in ''000''
Share Capital 3,233,750 0% 3,233,750 0.00% 3,233,750 0% 3,233,750
Reserves 46,558,433 23% 37,801,693 26% 30,027,995 22% 24,539,079
Net Worth 49,792,183 21% 41,035,443 23% 33,261,745 20% 27,772,829
VERT
ICAL
ANAL
YSIS
WIT
H
(OUR
COMPE
TITO
RS)
VERTICAL ANALYSIS WITH (OUR COMPETITORS)
PROFIT AND LOSS ACCOUNT (VERTICAL ANALYSIS)
Lucky Cement Ltd
D.G. Khan Cement Ltd
Attock Cement Ltd
Bestway Cement Ltd
2013-14 Variance 2013-14 Variance 2013-14 Variance 2013-14 Variance
Rupees in Million Rupees in Million Rupees in Million Rupees in Million
Sales 43,083 26,543 12,547 18,969
Cost of sales (24,393) -57% (17,285) -65% (8,843) -70% (12,446) -66%
Gross profit 18,690 43% 9,258 35% 3,704 30% 6,523 34%
Other operating expense (4,234) -10% (1,406) -5% (1,069) -9% (2,933) -15%
Operating profit 14,456 34% 7,851 30% 2,635 21% 3,590 19%
Profit before taxation (3,112) -7% (1,886) -7% (621) -5% (760) -4%
Profit after taxation 11,344 26% 5,965 22% 2,014 16% 2,830 15%
Earning Per Share Rs. 35.08 Rs. 13.62 Rs. 17.59 Rs. 5.36
COMPARISON WITH (OUR COMPETITORS)
Lucky CementD.G Khan Cement Bestway
Cement Attock Cement
BACK
HORI
ZONTA
L
ANAL
YSIS
WIT
H
(OUR
COMPE
TITO
RS)
HORIZONTAL ANALYSIS WITH (OUR COMPETITORS)
PROFIT AND LOSS ACCOUNT (HORIZONTAL ANALYSIS)
Lucky Cement Ltd Variance
D.G. Khan Cement
Ltd
Lucky Cement Ltd Variance Attock
Cement Ltd
2013-14 2013-14
Rupees in Million Rupees in Million
Sales 43,083 62% 26,543 43,083 243% 12,547
Cost of sales (24,393) 41% (17,285) (24,393) 176% (8,843)
Gross profit 18,690 102% 9,258 18,690 405% 3,704
Other operating expense (4,234) 201% (1,406) (4,234) 296% (1,069)
Operating profit 14,456 84% 7,851 14,456 449% 2,635
Profit before taxation (3,112) 65% (1,886) (3,112) 401% (621)
Profit after taxation 11,344 90% 5,965 11,344 463% 2,014
Earning Per Share Rs. 35.08 Rs. 13.62 Rs. 35.08 Rs. 17.59
BUSINESS STRATEGIES
1. Holding and growing local dominance
Further reinforcing our strength is what we keep in focus when designing our business strategies for the local market.
2. Increasing our share in the international market
Broadening our horizons, we have engaged our resources to the unconventional markets to become accessible to the construction industry worldwide.
3. Efficiency (in terms of cost, energy and resource utilization)
Efficiency is reflected in all our business approaches, giving us an edge over our competitors in cost and energy, by the skillful utilization of resources.
BUSINESS STRATEGIES
4. Sustainable Development (In terms of environmental and social responsibility)
We believe in giving back to the communities we operate in and to the society at large. We endeavor to stimulate environmental awareness among the stakeholders and have a broad vision for the sustainable world.
5. HR Excellence
We believe in people development. Our Human Resource is our asset and an important factor in our success. Our Intellectual Capital provides a framework that serves as a guiding force for the organization as a whole.
TREN
D AN
ALYS
IS
OF
(PRO
FIT
AND
LOSS
A/C
)
TREND ANALYSIS OF (PROFIT AND LOSS A/C)A Trend analysis is a method of analysis that allows traders to predict what
will happen with a stock in the future.
Trend analysis is based on historical data about the stock's performance given the overall trends of the market and particular indicators within the
market.
How it works/Example:A trend analysis is a method of analysis that allows traders to predict what will happen with a stock in the future. Trend analysis is based on historical data about the stock's performance given the overall trends of the market and particular indicators within the market.
Trend analysis takes into account historical data points for a stock and, controlling for other factors like the general changes in the sector, market conditions, competition for similar stocks, it allows traders to forecast short, intermediate, and long term possibilities for the stock.
TREND ANALYSIS OF (PROFIT AND LOSS A/C)
2014 2013 2012 2011
Sales =Sales Index Year
×10043,083,169.00 37,810,456.00 33,322,535.00 26,017,519.00
Sales Base Year 26,017,519.00 26,017,519.00 26,017,519.00 26,017,519.00
166% 145% 128% 100%
Cost of Sales =Cost of Sales Index Year
×10024,393,064.00 21,054,058.00 20,601,261.00 17,306,400.00
Cost of Sales Base Year 17,306,400.00 17,306,400.00 17,306,400.00 17,306,400.00
141% 122% 119% 100%
Gross Profit =Gross Profit Index Year
×10018,690,105.00 16,756,398.00 12,721,274.00 8,711,119.00
Gross Profit Base Year 8,711,119.00 8,711,119.00 8,711,119.00 8,711,119.00
215% 192% 146% 100%
TREND ANALYSIS OF (PROFIT AND LOSS A/C)
2014 2013 2012 2011
Distribution Cost =Distribution Cost Index Year
×1003,382,156.00 3,664,019.00 3,236,721.00 3,236,424.00
Distribution Cost Base Year 3,236,424.00 3,236,424.00 3,236,424.00 3,236,424.00
105% 113% 100% 100%
Administrative Exp=Administrative Exp Index Year
×100760,269.00 680,347.00 474,135.00 313,389.00
Administrative Exp Base Year 313,389.00 313,389.00 313,389.00 313,389.00
243% 217% 151% 100%
Finance Costs =Finance Costs Index Year
×10034,225.00 75,829.00 253,234.00 517,788.00
Finance Costs Base Year 517,788.00 517,788.00 517,788.00 517,788.00
7% 15% 49% 100%
TREND ANALYSIS OF (PROFIT AND LOSS A/C)
2014 2013 2012 2011
Other Charges =Other Charges Index Year
×1001,035,032.00 824,834.00 438,411.00 325,482.00
Other Charges Base Year 325,482.00 325,482.00 325,482.00 325,482.00
318% 253% 135% 100%
Other Income =Other Income Index Year
×100977,942.00 234,499.00 5,204.00 2,486.00
Other Income Base Year 2,486.00 2,486.00 2,486.00 2,486.00
39338% 9433% 209% 100%
Profit Before Tax =Profit Before Tax Index Year
×10014,456,365.00 11,745,868.00 8,323,977.00 4,320,521.00
Profit Before Tax Base Year 4,320,521.00 4,320,521.00 4,320,521.00 4,320,521.00
335% 272% 193% 100%
TREND ANALYSIS OF (PROFIT AND LOSS A/C)
2014 2013 2012 2011
Taxation =Taxation Index Year
×1003,111,962.00 1,997,106.00 1,541,561.00 350,121.00
Taxation Base Year 350,121.00 350,121.00 350,121.00 350,121.00
889% 570% 440% 100%
Profit After Tax =Profit After Tax Index Year
×10011,344,403.00 9,748,762.00 6,782,416.00 3,970,400.00
Profit After Tax Base Year 3,970,400.00 3,970,400.00 3,970,400.00 3,970,400.00
286% 246% 171% 100%
Lucky Cement Limited is one of the largest cement company in Pakistan is financial performance 2012 is so good as compared to the previous years. Company management is so strong and strategies that are used is very useful for the company betterment and its growth.
Due to state issues like electricity, gas and other factors not effect on the company performance but also company dramatically company growth going high. Company should grow their business as multinational and export the product in the other countries.
CONCLUSION
