Dewan Cement quarterly profit slumps 47%

October 02, 2024 (MLN): Dewan Cement Limited (PSX: DCL) posted a 46.8% lower profit after tax of Rs91.46 million [EPS: Rs0.19] during the quarter ending June 2024 despite a notable improvement in gross margins.

That compares to a profit of Rs172m [EPS: Rs0.36] earned in the same period last year (SPLY).

For the full financial year 2024, the cement manufacturer incurred a net loss of Rs509.71m [LPS: Rs1.05] compared to a loss of Rs586.31m [LPS: Rs1.21] in FY23.

Going by the quarterly results, the company's top line increased by 3.4% to Rs5.32bn. The gross profit surged by 106.5% to Rs294.81m in Q4 FY24.

The gross margins rose to 5.5% as compared to 2.8% in SPLY.

The company's other income plunged 92.8% to Rs29.82m.

On the expense side, Dewan Cmenet's administrative expenses fell 10.2% from a year ago to Rs125.9m, while selling and distribution expenses rose 21.6% to Rs42.06m.

The company’s finance cost decreased by 45.5% and stood at Rs8.01m as compared to Rs14.69m in SPLY.

On the tax front, the company paid a substantially lower tax worth Rs50.23m against the Rs292.25m paid in the corresponding period of last year, depicting a decrease of 82.8%.

This translates to an effective tax rate of 35.4% as compared to 63.0% in SPLY.

Amount in thousand except for EPS

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