DCL earnings fail to rise despite substantial drop in taxes

October 25, 2018 (MLN): Dewan Cement Limited (DCL) earnings fell by 24.79% for the first quarter ended 30^th September 2018, in spite of the company witnessing a major drop in their income taxes.

According to the notification issued to PSX, the decrease in net Turnover by 2.31% was further fueled by an increase in Cost of sales by 3.09%, pulling down the gross profit by 23.4%

Even though the major Operating expenses showed a slight increase, the drop in other operating expenses by 46.89% and increase in other operating income by 258.95% was a major source of alleviation for the company.

Furthermore, the increase in Finance costs by 51.64% i.e. Rs. 4 million also subsidized in worsening the financial position of the company.

Surprisingly, even the drop in income taxes by 41.41% i.e. Rs. 65 million failed to lift the profits of the company as compared to last year, causing the profits to drop by Rs. 60 million.

The Earnings per share of the company were stated at 0.38 for the quarter ended 30^th September 2018, 25.49% down from previous year.

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