September 14, 2022 (MLN): D.G Khan Cement Company (DGKC) has announced FY22 financial results wherein it reported net profits of Rs3.4 billion (EPS: Rs7.21) compared to Rs4bn (EPS: Rs8.96) in FY21, depicting a decline of 17.3% YoY mainly due to higher than estimated other expenses and tax rate.
Alongside financial results, the company announced a final cash dividend of Re 1 per share.
The topline of the company displayed a jump of 27% YoY primarily due to a 40% increase in retention prices, offsetting the impact of a 10% fall in dispatches to 6,539k tons.
Gross margins were sustained at 18% in FY22 as a significant hike in retail prices improved retention and offset the effect of an augmented jump in fuel prices along with noticeable depreciation in PKR which increased the overall cost of production.
The Other income increased to Rs2.7bn, up 6.5% YoY, mainly attributed to dividends received from unlisted holdings.
Among other line items, the Other expenses have significantly increased to Rs1.2bn, from Rs576.4mn in SPLY likely due to exchange loss. Finance cost has surged by 20% YoY owing to higher debt and borrowing costs.
Due to the imposition of the super tax, the effective tax rate remained higher during FY22 as it came at 50% compared to 26% in FY21.
Looking ahead, lower dispatches amid monsoon rain, recent floods and elevated coal prices will hurt DGKC’s margins in 1HFY23. But, in 2HFY23, the demand recovery and higher cement prices will revive profitability, analyst at Intermarket Securities said.
|
Consolidated Profit and Loss Account for the year ended June 30, 2022 ('000 Rupees) |
|||
|---|---|---|---|
|
|
Jun-22 |
Jun-21 |
% Change |
|
Revenue |
62,259,476 |
49,074,877 |
26.87% |
|
Cost of sales |
(50,934,245) |
(40,067,473) |
27.12% |
|
Gross profit |
11,325,231 |
9,007,404 |
25.73% |
|
Administrative expenses |
(892,479) |
(746,676) |
19.53% |
|
Selling and distribution expenses |
(1,753,090) |
(1,953,824) |
-10.27% |
|
Net impairment gains/ (losses) on financial assets |
15,069 |
87,963 |
-82.87% |
|
Changes in fair value of biological assets |
303,033 |
241,437 |
25.51% |
|
Other expenses |
(1,183,810) |
(576,399) |
105.38% |
|
Other income |
2,735,461 |
2,568,801 |
6.49% |
|
Finance cost |
(3,748,080) |
(3,121,788) |
20.06% |
|
Profit/ (Loss) before taxation |
6,801,335 |
5,506,918 |
23.51% |
|
Taxation |
(3,418,913) |
(1,413,735) |
141.84% |
|
Profit/ (loss) after taxation |
3,382,422 |
4,093,183 |
-17.36% |
|
Earnings / (Loss) per share – basic and diluted (Rupees) |
7.21 |
8.96 |
-19.53% |
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Posted on:2022-09-14T11:19:26+05:00
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