September 17, 2020 (MLN): D. G. Khan. Cement (DGKC) has announced its FY20 financial results, wherein the company reported a net loss of Rs 2.229 billion (LPS: Rs 5.05), against a net profit of Rs 1.864 billion (EPS: Rs 4.16) in FY19.
The loss is attributed to gross margins attrition that clocked in at 5% in FY20 compared to 13% in the corresponding period last year. As per research by Spectrum, this decline in margins was due to weak cement prices and rupee devaluation, resulting in a higher cost of production.
The other major highlight is colossal finance cost which increased by around 42% YoY to Rs 5.11 billion, hurting the financial stability of the company. However, a tax reversal of Rs 1.57 billion provided much-needed respite to the bottom line.
Consolidated Profit and Loss Account for the year ended June 30, 2020 ('000 Rupees)
Jun-20
Jun-19
% Change
Sales
41,592,685
43,627,007
-4.66%
Cost of sales
(39,626,910)
(37,952,807)
4.41%
Gross profit
1,965,775
5,674,200
-65.36%
Administrative expenses
(741,877)
(711,122)
4.32%
Selling and distribution expenses
(1,786,905)
(1,330,984)
34.25%
Net impairment losses on financial assets
(158,730)
(22,343)
610.42%
Changes in fair value of biological assets
305,256
335,739
-9.08%
Other expenses
(710,899)
(530,452)
34.02%
Other income
2,433,728
2,474,759
-1.66%
Finance cost
(5,111,350)
(3,609,744)
41.60%
(Loss)/Profit before taxation
(3,805,002)
2,280,053
–
Taxation
1,575,816
(415,170)
–
(Loss)/Profit after taxation
(2,229,186)
1,864,883
–
(Loss)/Earnings per share – basic and diluted (Rupees)