DG Khan Cement posts Rs4.08b profit

Earnings per share jump to Rs9.31 in six-month period.

KARACHI: DG Khan Cement - one of the country’s leading cement makers - has posted profit after tax of Rs4.08 billion in the first six months (Jul-Dec) of fiscal year 2015-16, up 20% compared to Rs3.39 billion in the same period of last year, according to the company notice sent to Pakistan Stock Exchange (PSX).

Earnings per share (EPS) jumped to Rs9.31 compared to an EPS of Rs7.75 in the period under review.



The company — part of one of the country’s largest private sector conglomerates, Nishat Group — in its second quarter (Oct-Dec) of fiscal year 2015-16 posted net profit of Rs2.36 billion (EPS of Rs5.38), up 5.35% compared to Rs2.24 billion (EPS of Rs5.10).

“The results were better than our expectations of Rs4.87 per share for the quarter,” JS Research commented on Tuesday.

Revenues of the company continued to increase despite plummeting exports mainly on the back of strong local sales and stable cement prices throughout the quarter, to clock-in at Rs7.39 billion (up 8.0% year on year) in second quarter of fiscal year 2015-16.

Margins during the second quarter of fiscal year 2015-16 also improved to 42% from 38% recorded in first quarter of fiscal year 2015-16 and 34% in the second quarter of fiscal year 2014-155 as input prices (coal, electricity) continued their downward spiral.

Published in The Express Tribune, February 17^th,  2016.

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