Lucky Core Industries (LCI) has posted strong financial results for 1HFY25, reporting a profit after tax of Rs. 6,301 million (EPS: PKR 68.23), marking a 25% increase year-on-year (YoY). This growth was driven by improved gross margins and a boost in other income. The company’s quarterly results for 2QFY25 also reflect strong performance, with net profit reaching Rs. 3,677 million (EPS: Rs. 39.82), representing a 47% YoY increase.
The company’s sales grew by 4% YoY in 1HFY25, reaching Rs. 62,246 million compared to Rs. 60,058 million in the same period last year. For the second quarter, net sales were Rs. 31,517 million, a modest 1% increase YoY. The improvement in gross margins was particularly notable, rising by 150 basis points YoY to 22.9% in the first half of FY25. 
Read More:
Utility Stores Raise Sugar Prices by Rs. 5 Per Kg
This was largely due to the 5.3% decrease in coal prices and the deregulation of non-essential medicines, which positively impacted the pharmaceutical sector. The second quarter saw even stronger gross margin growth, increasing by 270 basis points.
LCI also saw a substantial rise in other income, which surged by 28% YoY to Rs. 2,444 million in 1HFY25. This was attributed to higher earnings from cash and short-term investments. The second quarter alone saw other income jump by 62% YoY, amounting to Rs. 1,617 million.
Additionally, finance costs decreased by 35% YoY to Rs. 1,300 million, thanks to lower interest rates. The company’s effective tax rate in 2QFY25 was 36.7%, up slightly from 35.1% in the previous year’s quarter. To reward shareholders, LCI declared an interim cash dividend of Rs. 34.00 per share for 2QFY25, up from Rs. 27.00 per share in the same period last year.
