D.G. Khan Cement earnings miss estimates

September 16, 2024 (MLN): D.G. Khan Cement Company Limited (PSX: DGKC) reported financial results that missed analyst expectations as its margins slumped.

One of the country's largest cement manufacturer posted a net loss of Rs1.69 billion [LPS: Rs3.86] in the quarter ending June 2024. That compares to a loss of Rs5.75bn [LPS: Rs13.12] in the same period last year (SPLY).

Brokerage House Topline Securities said earnings were lower than expectations. At the same time, Arif Habib Limited (AHL) had expected the company to post earnings per share of Rs1.96.

Going by the results, the company's revenue inched up by 0.3% to Rs16.99bn as compared to Rs16.94bn in SPLY.

Meanwhile, the cost of sales rose by 3.5%, worsening the gross profit by 26.2% to Rs1.34bn in Q4 FY24.

The gross margins fell to 7.9% as compared to 10.7% in SPLY.

During the period under review, other income marked a decline of 3.7% to stand at Rs1.06bn in Q4 FY24 as compared to Rs1.1bn in SPLY.

On the expense side, the company's administrative expenses rose 35.9% from a year ago to Rs318.62m, selling and distribution expenses rose 28.9% to Rs992.32m, and other operating expenses rose 87.9% to Rs118.81m.

The company’s finance cost also increased by 3.4% and stood at Rs1.93bn as compared to Rs1.87bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a significantly lower tax worth Rs867.82m against the Rs5.75bn paid in the corresponding period of last year, depicting a fall of 84.9%.

Amount in thousand except for EPS

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