Dera Ghazi Khan Cement Limited (DGKC) has posted a net profit of Rs 7.85 billion for the year ended June 30, 6.3% down compared to Rs 8.38 billion in the same period last year, according to a company notice sent to Pakistan Stock Exchange (PSX).
The earnings per share (EPS) for the outgoing FY17 clocked in at Rs 18.01 as against Rs 19.52 during the previous year. The cement manufacturer also announced a final cash dividend of Rs 7.5/share.
In FY17, sales from cement operations remained flat while earnings declined by 9 %. DGKCs consolidated revenue declined by 10% YOY during the outgoing quarter mainly on account of 11 % decline in revenue from cement operations.
Sales from cement operations clocked in at Rs 7.5 billion down 11% in 4QFY17. Its consolidated gross margins shrunk by 7ppts to 32% while gross margins of cement operations fell by 10ppts to 35%
The company’s scrip; however, went to up 0.47 percent at the PSX.
In addition, the board of directors of DG Khan Cement Company approved a renewal of working capital loan of Rs 1 billion to its associate company Nishat Hotels Pvt Limited (NHPL) at three-month KIBOR (+0.5 percent).
Topline securities commented on the result that it came in the line of market expectations. They also stated that the fall in margins was due to lower net retention and higher input costs (with RLNG prices increased by about 25%).
Tab He Picture Main Building Ek Taraf Jhuk Gayi hai :p