Earning Review: DGKC's annual profits undergo a massive decline of 79%

MG News | September 16, 2019 at 04:05 PM GMT+05:00

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September 16, 2019 (MLN): DG Khan Cement Company Limited has announced its financial earnings today for the year ended on June 30^th 2019, in which the company reported its profits after tax declined massively by 79% to Rs 1.86 billion from Rs 8.9 billion earned in the same period last year. This translated in to earning per share which clocked in at Rs 4.16 against Rs 20.25 exhibited last year.

Though net sales of the Company during the period increased remarkably by 30.37% due to surge in cement dispatches, significant rise in cost of sales by 54% and a colossal rise in finance cost owing to increase in short term borrowing and higher interest rates heavily impacted net earnings.

In addition, rise in selling and distribution expenses by 44.7% and decline in other income by 17.5% due to lower dividend income further put a dent on company’s profitability.

Alongside financial results, the board of directors of the company announced a final cash dividend at Rs 1 per share i.e. 10%.

Consolidated Profit and Loss Account for the year ended June 30, 2019 ('000 Rupees)
	Jun-19	Jun-18	% Change
Sales	43,627,007	33,464,856	30.37%
Cost of sales	(37,952,807)	(24,647,758)	53.98%
Gross profit	5,674,200	8,817,098	-35.65%
Administrative expenses	(711,122)	(706,148)	0.70%
Selling and distribution expenses	(1,330,984)	(919,866)	44.69%
Other operating expenses	(530,452)	(2,545,982)	-79.17%
Other income	2,474,759	3,001,978	-17.56%
Changes in fair value of biological assets	335,739	242,436	38.49%
Net impairment losses on financial assets	(22,343)	-
Finance cost	(3,609,744)	(574,569)	528.25%
Profit before taxation	2,280,053	7,314,947	-68.83%
Taxation	(415,170)	1,623,594
Profit after taxation	1,864,883	8,938,541	-79.14%
Earnings per share - basic and diluted (Rupees)	4.16	20.25	-79.46%

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