DGKC posts 211% profit surge to Rs3.8bn in 1HFY25

February 19, 2025 (MLN): D.G. Khan Cement Company Limited (PSX: DGKC) has posted a remarkable 211% increase in its profit for 1HFY25, reaching Rs3.8 billion compared to Rs1.2bn in the same period last year.

The company’s earnings per share (EPS) jumped to Rs8.42 from Rs2.45 in the prior year period.

The surge in earnings is attributed to improved sales, cost efficiencies, and a sharp decline in finance costs.

The company's sales revenue grew by 7.4% to Rs40.15bn, up from Rs37.4bn in 1HFY24.

Despite a marginal 0.5% reduction in the cost of sales, gross profit witnessed an impressive 48% increase, amounting to Rs9bn from Rs6.1bn in the corresponding period of the previous year.

Operating expenses saw mixed trends, with administrative expenses rising by 10.6% to Rs715.3 million, and selling and distribution expenses surging by 62.7% to Rs1.96bn.

Other expenses stood at Rs342.9mn, a stark contrast from last year's gain of Rs52.7mn.

Meanwhile, changes in the fair value of biological assets contributed Rs241mn, reflecting a 16.2% year-over-year increase.

A key highlight in DGKC’s financial performance was its 37% reduction in finance costs, which fell to Rs2.8bn from Rs4.4bn, significantly easing the pressure on the bottom line.

Other income also rose by 8.8% to Rs2.3bn, further supporting profitability.

The company’s pre-tax profit surged by 193.3% to Rs5.46bn, compared to Rs1.86bn in 1HFY24.

After accounting for a 10.3% increase in levy expenses and a 157.2% rise in taxation, the net profit stood at Rs3.86bn.

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