September 14, 2021 (MLN): DG Khan Cement Company Limited (DGKC) has announced its financial results for FY21 result today where the company reported a profit after tax of Rs4.09 billion (EPS: Rs8.96), a turnaround from the same period when it suffered a huge loss of Rs2.23bn (LPS:5.05).
Alongside the result, the company announced a final cash dividend of Rs1 per share.
This swing in bottom-line in FY21 is due to improvement in revenue (up by 18% YoY), thanks to higher retention price and 3% increase in dispatches which led gross margins to increase considerably by 14% YoY to 18%.
Pursuant to the financial statement provided to PSX, the company enjoyed Rs 87mn net impairment gains on financial assets in the fiscal year 2020-21 against the losses of Rs158mn reported in the last fiscal year.
Moreover, the other income of the company increased by 5.5% due to meagre increase in dividend from MCB, highlighted Saad Hanif, an Investment Analyst at Insight Securities.
The positive impact of lower interest rate was visibly seen in financial cost which plunged by 39% YoY to Rs3.12bn in the said period.
During the said period, the effective tax rate for the company clocked in at 26% against the tax credit of Rs1.58bn in SPLY.
In addition, the company has also decided to renew the working capital loan of Rs1bn extended to Nishat Hotels and Properties Limited, at the mark-up rate of 1-month KIBOR plus 100 bps for a period of one year starting from the date of approval by the shareholders.
Consolidated Profit and Loss Account for the year ended June 30, 2021 ('000 Rupees) | |||
|---|---|---|---|
| Jun-21 | Jun-20 | % Change |
Revenue | 49,074,877 | 41,592,685 | 17.99% |
Cost of sales | (40,067,473) | (39,626,910) | 1.11% |
Gross profit | 9,007,404 | 1,965,775 | 358.21% |
Administrative expenses | (746,676) | (741,877) | 0.65% |
Selling and distribution expenses | (1,953,824) | (1,786,905) | 9.34% |
Net impairment gains/ (losses) on financial assets | 87,963 | (158,730) | – |
Changes in fair value of biological assets | 241,437 | 305,256 | -20.91% |
Other expenses | (576,399) | (710,899) | -18.92% |
Other income | 2,568,801 | 2,433,728 | 5.55% |
Finance cost | (3,121,788) | (5,111,350) | -38.92% |
Profit/ (Loss) before taxation | 5,506,918 | (3,805,002) | – |
Taxation | (1,413,735) | 1,575,816 | – |
Profit/ (loss) after taxation | 4,093,183 | (2,229,186) | – |
Earnings / (Loss) per share – basic and diluted (Rupees) | 8.96 | (5.05) | – |
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