DG Khan Cement rakes in Rs2.06 billion profit

Published: April 20, 2017
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PHOTO: LUCKY CEMENT

PHOTO: LUCKY CEMENT

KARACHI: DG Khan Cement Company Limited (DGKC) posted a net consolidated profit of Rs2.06 billion in the quarter ended March 31, down 6% from Rs2.2 billion in the same period of the previous fiscal year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

Earnings per share (EPS) decreased to Rs4.71 compared to an EPS of Rs5.07 in the period under review. KSE-100 index closed at 47,603, up 729 points or 1.56% on Wednesday. DG Khan Cement share price closed at Rs228.39, up 1.5% from Rs224.99.

Cumulatively during the first nine months of fiscal year 2016-17, earnings clocked in at Rs6.45 billion (or an EPS of Rs14.73) compared to Rs6.05 billion (or an EPS of Rs13.83) in the corresponding period of last year.

Sequential decline in the company’s turnover (down 2% quarter-on-quarter to Rs7.9 billion) is attributable mainly to a 9% drop in cement dispatches during the third quarter of fiscal year 2017.

While gross margins dropped sharply by 610 basis points during the third quarter of fiscal year 2017 to 36%, compared to 42% in the second quarter of fiscal year 2017 due to augmented costs including coal and fuel cost.

However, during the nine months of fiscal year 2017, gross margins remained relatively stable clocking in at 42% (down 101 basis points).

Selling expenses dropped by 11% quarter-on-quarter to Rs223 million, owed to 7% contraction in export dispatches, adding up to Rs728 million in nine months of fiscal year 2017, depicting a 17% year-on-year jump in the same period of last year.

DG Khan Cement is one of the largest cement companies in Pakistan, which is part of Nishat Group, one of the largest private sector conglomerates in the country.

Published in The Express Tribune, April 19th, 2017.

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