Corporate results: DG Khan Cement’s earnings up 25%

It comes on the back of higher revenues, better margins

KARACHI: DG Khan Cement has announced a consolidated profit of Rs1.73 billion for the quarter ended September 2016, up 25% compared to Rs1.39 billion in the same period of last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share increased to Rs3.94 in Jul-Sept 2016 compared to Rs3.17 in the corresponding quarter of previous year.

The result was in line with expectations, said JS Research in a report.

DG Khan Cement’s share price fell 1.6% to Rs172.67 at the PSX on Thursday. The benchmark KSE 100-share Index closed at 39,987, down 539 points or 1.35%.

The cement manufacturer - part of a large private-sector conglomerate Nishat Group - saw its revenue rise 5.7% year-on-year during the quarter mainly in the wake of increased cement prices and sales. The prices were pushed up citing an increase in the federal excise duty. Gross margins stood at a strong 44.1% compared to 38.1% in the same quarter last year.

Published in The Express Tribune, October 28^th, 2016.

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