DGKC transforms into profit powerhouse

August 28, 2025 (MLN): D.G. Khan Cement Company Limited (DGKC) has delivered a remarkable financial performance for the fiscal year ended June 30, 2025, with profits soaring by an exceptional 11x compared to the previous year.

The cement giant reported a net profit of Rs9.76 billion for FY2025, a dramatic jump from Rs882 million in FY2024.

This extraordinary turnaround reflects the company's strong operational recovery and improved market conditions in Pakistan's construction sector.

The company has declared a final cash dividend of Rs2 per share, representing a 20% dividend yield for the fiscal year ended June 30, 2025.

DGKC, listed on the Pakistan Stock Exchange (PSX), recorded total revenue of Rs78.63bn, marking a solid 9.38% increase from Rs71.89bn in the previous fiscal year.

The company's gross profit nearly doubled, reaching Rs19.8bn compared to Rs11.61bn in FY2024, an impressive 70.51% improvement.

The most striking aspect of DGKC's financial performance was the significant reduction in finance costs, which dropped by 49.86% from Rs8.55bn to Rs4.29bn.

This substantial decrease in borrowing costs contributed meaningfully to the bottom-line improvement.

While the company managed to reduce its cost of sales by 2.39%, it strategically increased investments in growth areas.

Administrative expenses rose by 8.92% to Rs1.49bn, while selling and distribution expenses increased by 48.51% to Rs3.88bn, indicating expanded market reach and distribution capabilities.

The company also benefited from biological assets revaluation, with changes in fair value contributing Rs470m compared to Rs372m in the previous year.

The most remarkable metric was DGKC's earnings per share, which skyrocketed by 1385.21% to Rs. 21.09 from just Rs1.42 in FY2024.

Other income also contributed positively to results, increasing by 15.88% to Rs5.05bn, while the company maintained disciplined cost management across various operational areas.

The company's tax provision increased to Rs4.3bn from Rs2.22bn, reflecting higher pre-tax profits and the company's substantial contribution to national revenues.

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