DGKC sees 38% YoY in profit during 9MFY23

April 19, 2023 (MLN): DG Khan Cement Company (DGKC)on Wednesday posted consolidated net profits of Rs2.54 billion (EPS: Rs5.24) in 9MFY23, 38% lower than the profits of Rs4.11bn (EPS: Rs8.84) during the same period in the previous fiscal year, amid an economic slowdown.

The top line of the company registered a meager growth of 13.33% YoY to stand at Rs52.25bn. However, the proportionally higher increase in the cost of sales dented the gross margins of the company by 2.17% in the review period.

The drop in the company’s earnings is on the back of a massive increase in coal costs, PKR depreciation, and augmented energy tariff.

With regard to the company’s major expense heads, DGKC’s admin expenses jumped by 17.84% YoY. Whereas, selling and distribution costs also dropped by around 31% YoY during the period under review.

The company’s finance cost inflated by 2x YoY as the central bank increased interest rates to tame inflation.

The other income of the company moved up by only 11.8% YoY to clock in at Rs2.18bn in 9MFY23.

On the tax front, the effective tax rate stood at 30.39% in 9MFY23 as opposed to 24.7% in SPLY.

DGKC is a public limited company incorporated in 1978 as a limited liability company. The Company is primarily engaged in the production and sale of Clinker and Cement with its plants stretched from North to Center to South.

The company also enjoys a notable presence in foreign markets including Bangladesh, Afghanistan, China, Sri Lanka, and other parts of central Africa.

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