September 19, 2018 (MLN): DG Khan Cement Company Limited enjoys the benefits of tax reversals, as a decline in their pre-tax profits turns into a 14% gain in overall profits for the year.
During the company’s Board of Directors meeting, which took place earlier today, the company reviewed its consolidated financial earnings for the year and compared it with the earnings made during the prior year.
As per the report issued to PSX, DG Khan’s sales increased by 3% but due to a greater increase in cost of sales, the gross profits slid down by 27%.
Among others, non-core expenses during the year, increased by more than double the amount on a year-on-year basis, thus resulting in a 34% decline in pre-tax profits.
Luckily for the company, tax reversals worth Rs.1.6 billion favored the overall profits into climbing up by 14%, YoY, as the profits rose form Rs.7.9 billion to Rs.8.9 billion.
The basic and diluted earnings per share are recorded at Rs.20.25 per share, up by 12% from Rs.18.01 per share, YoY.
Other than this, the board has recommended 42.5% final cash dividend, i.e. at Rs.4.25 per share.
Consolidated Profit and Loss Account for the Year Ended June 30th 2018 ('000 Rupees) | |||
| Jun-18 | Jun-17 | % Change |
Sales | 33,464,856 | 32,475,147 | 3.05% |
Cost of sales | (24,647,760) | (20,348,126) | 21.13% |
Gross profit | 8,817,096 | 12,127,021 | -27.29% |
Administrative expenses | (706,146) | (617,386) | 14.38% |
Selling and distribution expenses | (919,866) | (996,589) | -7.70% |
Other expenses | (2,545,982) | (1,076,075) | 136.60% |
Other income | 3,001,979 | 2,110,462 | 42.24% |
Changes in fair value of biological assets | 242,436 | (10,017) |
|
Finance cost | (574,569) | (412,137) | 39.41% |
Profit before taxation | 7,314,948 | 11,125,279 | -34.25% |
Taxation | 1,623,594 | (3,271,815) |
|
Profit after taxation | 8,938,542 | 7,853,464 | 13.82% |
Earnings per share – basic and diluted (Rupees) | 20.25 | 18.01 | 12.44% |
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