February 13, 2020 (MLN): DG Khan Cement (DGKC) has announced its financial results today, wherein the company as expected by various research houses, posted a net loss of Rs 946 million against the profits of Rs 1.67 billion earned in the corresponding period of last year.
The company reported its loss per share which locked in at Rs 2.16 per share against the earnings per share of Rs 3.82 per share.
The losses of the company were mainly attributable to higher finance cost which rose from Rs 1.4 billion to Rs 2.7 billion on account of higher borrowings in the wake of a rising interest rate environment.
The second major factor that eroded company’s profitability was a jump in selling and distribution expenses from Rs 660.9 million to Rs 1 billion mainly due to higher exports. The other major factors include lower retention prices, higher fuel and power expenses which dragged the company’s profits towards the red zone.
As the company witnessed a recovery in local dispatches during the period mentioned above, its net revenues surged by 5.2% to Rs 22.6 billion from Rs 21.4 billion.
Furthermore, owing to rise in cost pressure, the company’s gross margins depicted a significant decline from 16% to 5%.
With regards to other income, which showed a muted growth of 14% YoY from Rs 1.2 billion to Rs 1.37 billion on the back of lower dividend income from concerned entities.
Financial Results for the year ended December 31, 2019 ('000 Rupees)
Cost of sales
Selling and distribution expenses
Net impairment losses on financial assets
Other operating expenses
(Loss)/Profit before taxation
Profit after taxation
(Loss)/Earnings per share – basic and diluted (Rupees)
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