This document presents an analysis of the business and financial performance of Lucky Cement (LCL) between 2011-2014. It includes an overview of the cement industry in Pakistan, LCL's key competitor DG Khan Cement, and LCL's financial ratios, production/sales, profitability, liquidity, and efficiency over this period. It also performs a SWOT analysis and Porter's Five Forces analysis of the industry and makes recommendations for LCL's future strategic positioning and growth.

1. OXFORD BROOKES
UNIVERSITY
RESEARCH AND ANALYSIS
PROJECT
An Analysis and evaluation of business and financial
performance of
“LUCKY CEMENT”
between 1 July 2011 and 30 June 2014 (Topic 8)
PRESENTED BY: XXXXXX XXXXX
ACCA ID: XXXXXXX

2. OVERVIEW FOR THE PRESENTATION
 THE BASIC INFORMATION OF INDUSTRY
THE BASIC INFORMATION OF COMPANY
THE BASIC INFORMATION OF COMPETITOR
 THE FINANCIAL PERFORMANCE OF LCL
 THE BUSINESS PERFORMANCE OF LCL
CONCLUSION AND RECOMMENDATIONS
QUESTIONS AND ANSWERS

3. THE OVERVIEW OF INDUSTRY
DG KHAN CEMENT
• 2ND LARGEST
MANUFACTURER
• PART OF A NISHAT
GROUP
LUCKY CEMENT
• LARGEST
MANUFACTURER
• PART OF YUNUS
BROTHERS GROUP
CEMENT INDUSTRY
• THE 24
MANUFACTURERS OF
CEMENT.
• ALMOST 44M TONS
PRODUCTION
CAPACITY

4. FINANCIAL RATIO ANALYSIS

5. PRODUCTION
AND SALES
ANALYSIS
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
5,935,791
6,150,440
6,621,000
4,004,458 4,031,801 3,988,512
3,722,420 3,769,880
4,132,000
2,765,534
2,887,812 2,954,943
2,251,540 2,289,463
2,487,000
1,253,422
1,120,464 1,021,329
Production and Sales Analysis
Cement Production (T
ons) Local Sales (T
ons) Export Sales (T
ons)
(Source: LCL, 2012:2014; DGKC, 2012:2014)

6. PROFITABILITY
ANALYSIS
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
38%
44% 43%
33%
37%
35%
20%
26% 26%
18%
22% 22%
23%
26% 26%
14% 15%
13%
Profitability Analysis
Gross Profit Margin Net Profit Margin Return on Capital Employed
(Source: LCL, 2012:2014; DGKC, 2012:2014)

7. LIQUIDITY ANALYSIS
-
1.00
2.00
3.00
4.00
5.00
6.00
2.64
3.38
4.37
1.63
2.77
5.40
2.28
3.01
4.01
1.54
2.59
5.17
Liquidity Analysis
Current Ratio Quick Ratio
(Source: LCL, 2012:2014; DGKC, 2012:2014)

8. SOLVENCY
ANALYSIS
-
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
450.00
0.012 0.003
-
0.141 0.060 0.021
33.87
155.90
423.39
3.43 8.13 13.90
Solvency Analysis
Gearing Interest Cover
(Source: LCL, 2012:2014; DGKC, 2012:2014)

9. EFFICIENCY
ANALYSIS
-
10
20
30
40
50
60
70
12
16 18
5 4
2
23
25 25
23
39
28
59
62 61
50
54 52
Efficiency Analysis
Debtor Collection Period Invetory Holding Period Creditors Payment Period
(Source: LCL, 2012:2014; DGKC, 2012:2014)

10. INVESTOR
ANALYSIS
-
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
10.000
0.022 0.032 0.037 0.009 0.013 0.014
6.000
8.000
9.000
1.500
3.000
3.500
Investor Analysis
Earning/(Loss) per Share Dividenr per Share
(Source: LCL, 2012:2014; DGKC, 2012:2014)

11. SWOT ANALYSIS

12. SWO
T
SWO
T
Strengths:
• Capability to
generate electricity.
• Part of Yunus
Brothers Group
• Repayment of loan
Strengths:
• Capability to
generate electricity.
• Part of Yunus
Brothers Group
• Repayment of loan
Weaknesses:
• Failed quality test in
South Africa
• Huge increase in
cash and bank
balance
Weaknesses:
• Failed quality test in
South Africa
• Huge increase in
cash and bank
balance
Opportunities:
• Construction boom in
Pakistan
• Contract of road
from Gwadar to
China
• Qatar FIFA World Cup
2022
Opportunities:
• Construction boom in
Pakistan
• Contract of road
from Gwadar to
China
• Qatar FIFA World Cup
2022
Threats:
• Energy Crisis
•Security Reasons
Threats:
• Energy Crisis
•Security Reasons

13. PORTER’S FIVE FORCES
ANALYSIS

14. Threat for
New
Entrants
Threat for
New
Entrants
Low threat of
entrants.
Energy crisis
Increasing fuel
and power tariffs
Low threat of
entrants.
Energy crisis
Increasing fuel
and power tariffs
Bargaining
Power of
Supplier
Bargaining
Power of
Supplier
Local Supplier –
Low Power
Pakistan rich in
minerals
Local Supplier –
Low Power
Pakistan rich in
minerals
Foreign Supplier
– High Power
Wider access
worldwide
Foreign Supplier
– High Power
Wider access
worldwide
Bargaining
Power of
Supplier
Bargaining
Power of
Supplier
Local Customer –
Low Power
Oligopoly
Local Customer –
Low Power
Oligopoly
Foreign
Customers – High
Power
Low prices to
export
Foreign
Customers – High
Power
Low prices to
export
Substitute
Substitute
No substitute yet
No substitute yet
Rivalry
Rivalry
Same Price Level
Same Price Level
Price war
expected in
future
Price war
expected in
future

15. Conclusion
Conclusion
Compariso
n of
Financial
Performan
ce
Compariso
n of
Financial
Performan
ce
Compariso
n of
Business
Performan
ce
Compariso
n of
Business
Performan
ce
LCL better
strategic
position
LCL better
strategic
position
Future
vision
Future
vision
Recommenda
tions
Recommenda
tions
Capture
the market
of Qatar
Capture
the market
of Qatar
Hedging to
avoid
exchange
risk
Hedging to
avoid
exchange
risk
Advertise
ment
Advertise
ment
Gwadar to
China Road
Gwadar to
China Road