D. G. Khan Cement profits falls 17.13% to Rs. 3.733 billion

D. G. Khan Cement, a Nishat Group company, reported a 17% decline in bottom-line profits after Profit after Taxation for the company clocked in at Rs. 3.733 billion as it announced expansion plans at D. G. Khan cement site.

D. G. Khan Cement for the half year ending December, 2017 increased by 7.33% – 15.763 billion – with a 26% increase in cost of sales thinning gross margins by 17% to 5.249 billion.

However, the company’s earnings per share clocked in at Rupees 8.52 per share.

In additional notes, mentioned in the company releases, board at Nishat and DGK Cement plan to invest an additional amount worth Rs. 1 billion in Hyundai Nishat Motor Company via subscription of ordinary shares.

Furthermore, the management at D. G. Khan Cement announced that it is currently seeking regulatory permissions to set up brownfield cement production line and also reviewed the progress on existing expansion operations on production line 3 at D. G. Khan Khofli Sattai site.

Comparison of Key Financials

Unconsolidated Profit and Loss Account – For the Year Ended, December 30th 2017

Key Financials

2017

2016

% Change

 

Amounts in PKR ‘000

Sales

15,763,670

14,687,163

7.33%

Cost of Sales

10,513,750

8,347,598

25.95%

Gross Profit

5,249,920

6,339,565

-17.19%

Administrative Expenses

295,919

261,323

13.24%

Selling and Distribution Expenses

460,165

504,705

-8.82%

Other Expenses

469,528

506,377

-7.28%

Other Income

1,192,845

1,175,841

1.45%

Finance Cost

192,644

163,113

18.10%

Profit before Taxation

5,024,509

6,079,888

-17.36%

Taxation

1,290,654

1,574,207

-18.01%

Profit after Taxation

3,733,855

4,505,681

-17.13%

EPS – Basic and diluted

8.52

10.28

-17.12%

Company release on Earnings Report can be accessed here.

Posted on: 2018-02-20T15:14:00+05:00