On a sequential QoQ basis, margins of the company declined by 4pps to 30% during 3QFY14 in spite of higher prices as a lower gas supply increased the company’s cost of production during the period. CREATIVE COMMONS
Earnings per share (EPS) declined to Rs9.0 compared to an EPS of Rs9.68 in the period under review of previous year.
On a quarterly basis, earnings declined by 4% year-on-year (YoY) to Rs1.27 billion or EPS of Rs2.91 during third quarter of FY14. Whereas, on a sequential basis, earnings dipped by 20% quarter-on-quarter (QoQ) because of significantly higher costs of production.
DGKC’s revenues increased by 14% YoY to Rs7.2 billion during 3QFY14 because of a 4% YoY increase in total off-take to 1.03 million metric tons and a 13% YoY increase in local cement prices to Rs510 per 50 kg bag.
The potential increase in top-line was slowed by lower realised export prices in dollar terms because of regional competition. On a sequential basis, sales grew by 10% QoQ because of a 1.5% QoQ increase in local cement prices and 7% QoQ increase in total dispatches.
The gross margins of the company declined by 5 percentage points (pps) to 33% during the nine months of FY14 despite higher prices as inflationary pressures, such as higher electricity, fuel and gas costs contributed to the increase in the company’s cost of production.
On a sequential QoQ basis, margins of the company declined by 4pps to 30% during 3QFY14 in spite of higher prices as a lower gas supply increased the company’s cost of production during the period.
Other income of the company increased by 18% YoY to Rs1.28 billion during 9MFY14 because of higher dividends received from the company’s investment in Muslim Commercial Bank (MCB).
Published in The Express Tribune, April 25th, 2014.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ