DGKC swings to profit in 1QFY22

October 25, 2021 (MLN): DG Khan Cement Company Limited (DGKC) has announced its financial results for the first quarter of FY22 ended on September 30, 2021 today where the company witnessed a remarkable turnaround as the profit after tax clocked in at Rs1.13 billion (EPS: Rs2.33), against a loss of Rs293.66 million in 1QFY21.

Going by the financial statement sent to PSX, the sales of the company stood at Rs11.99bn, witnessing an upsurge of 5.75% YoY in 1QFY22 mainly on the back of improved retention price. while, a 6% YoY decline in cost of sales pushed gross profit to Rs2.39bn, compared to Rs1.13bn in the same period last year.

Moreover, the other income of the company was boosted by 5.5x to clocked in at Rs557.24mn in 1QFY22 as banks, holding in MCB did not pay a dividend in the same quarter last year amid State Bank policy restricting payouts to conserve capital given the onset of coronavirus, a report by Arif Habib Limited noted.

The financial cost of the company dropped by around 6% YoY to Rs782.6mn in the said period, attributable to the lower borrowing.

During the said period, the effective tax rate for the company clocked in at 22.36% against the tax credit of Rs59.72bn in SPLY.

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