DGKC incurs losses worth Rs 2 billion

April 23, 2020 (MLN): D.G Khan Cement Company Limited (DGKC) has unveiled its financial results today for the quarter ended on March 31, 2020 wherein the company reported a net loss of Rs2 billion against the profits of Rs2.5 billion in the corresponding quarter of last year.

The Loss per share of the company clocked in at Rs4.61 per share compared to the profits of Rs 5.71 per share last year.

During the quarter, the top-line of the company witnessed a meagre growth of 1.87% YoY led by the weakness in retention prices which offset the impact of 4% YoY growth in total dispatches (1,646k tons in 3QFY20 vs. 1,714k last year; local offtake dipped by 6% YoY while exports jumped up by a stunning 59% YoY, a report by Arif Habib Limited revealed.

Furthermore, lower retention prices alongside PKR depreciation dented DGKC’s margins from 16% to 4%. In addition to this, the margins were decline due to volumetric decline tagged with higher coal prices.

The further injury came on account of a substantial 64% YoY rise in finance costs driven largely by enhanced short term borrowing requirements and higher benchmark interest rates during the quarter under review.

Consolidated Profit and Loss Account for the Quarter ended on March 31, 2020 (Rupees '000)




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Posted on: 2020-04-23T13:03:00+05:00