Corporate results: DG Khan Cement’s profit rises 48% in first quarter
Growth was driven by higher private-sector spending
Growth was driven by higher private-sector spending. PHOTO: FILE
KARACHI:
DG Khan Cement - one of the largest cement manufacturers in Pakistan - has announced a net profit of Rs1.72 billion in the first quarter ended September 30, 2015, up 48% compared to Rs1.16 billion in the same quarter of the previous year, according to a notice sent to the Karachi Stock Exchange on Wednesday.
Earnings per share in the July-September quarter rose to Rs3.93 compared to Rs2.64 in the same quarter of previous year. Topline Securities commented in its report that the results were above market estimates.
The company recorded revenues of Rs6.2 billion, up 7.4% year-on-year, primarily because of higher sales in the domestic market, which grew 12% to 0.7 million tons in the quarter.
“We believe this excellent growth was led by higher private-sector spending,” the report said.
Despite positive developments, the report pointed to the risks faced by the company including fears of the cement cartel breakdown that may lead to a price war among companies, higher-than-anticipated rise in gas tariff, abnormal increase in international coal prices, delay in construction projects and poor performance of the company’s subsidiaries.
Exports of DG Khan Cement fell 16% year-on-year to 163,000 tons because of lower shipments to South Africa. In April this year, the African nation imposed a 69% anti-dumping duty on the company, which has significantly affected the export volume.
Published in The Express Tribune, October 29th, 2015.
DG Khan Cement - one of the largest cement manufacturers in Pakistan - has announced a net profit of Rs1.72 billion in the first quarter ended September 30, 2015, up 48% compared to Rs1.16 billion in the same quarter of the previous year, according to a notice sent to the Karachi Stock Exchange on Wednesday.
Earnings per share in the July-September quarter rose to Rs3.93 compared to Rs2.64 in the same quarter of previous year. Topline Securities commented in its report that the results were above market estimates.
The company recorded revenues of Rs6.2 billion, up 7.4% year-on-year, primarily because of higher sales in the domestic market, which grew 12% to 0.7 million tons in the quarter.
“We believe this excellent growth was led by higher private-sector spending,” the report said.
Despite positive developments, the report pointed to the risks faced by the company including fears of the cement cartel breakdown that may lead to a price war among companies, higher-than-anticipated rise in gas tariff, abnormal increase in international coal prices, delay in construction projects and poor performance of the company’s subsidiaries.
Exports of DG Khan Cement fell 16% year-on-year to 163,000 tons because of lower shipments to South Africa. In April this year, the African nation imposed a 69% anti-dumping duty on the company, which has significantly affected the export volume.
Published in The Express Tribune, October 29th, 2015.