Jan. 31 (Bloomberg) -- Lucky Cement Ltd., Pakistan’s biggest producer of the building material, said second-quarter profit fell 9 percent after transport costs rose and exports to Gulf nations declined.
Net income fell to 733.9 million rupees ($8.58 million), or 2.27 rupees a share, in the three months ended Dec. 31 from 805.2 million rupees, or 2.49 rupees, a year earlier, the cement maker said today in a statement to the Karachi Stock Exchange. Sales fell to 7.77 percent to 7.09 billion rupees.
Pakistan increased domestic gasoline prices in line with higher international crude rates, raising the cost of transportation. Demand for Pakistani cement from Gulf countries has fallen as those nations have set up their own plants.
“Demand in regional markets except Afghanistan and Iraq is expected to be under pressure due to slack construction activities and surplus capacities,” Lucky Cement said in a statement today. “African markets will continue to be potential markets.”
Lucky Cement fell 0.3 percent to 74 rupees as of 2:01 p.m. on the Karachi Stock Exchange. The stock rose 14 percent last year.
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