DG Khan Cement Posts a Profit of Rs 8.93 Billion for FY2018

DG Khan Cement Company Limited posted a consolidated net profit of Rs. 8.93 billion in the fiscal year that ended June 30, 2018, up by 13.82% as compared to Rs. 7.85 billion in the previous year.

The accretion in the earnings can be attributed to tax credit from Hub plant expansion. Due to the tax reversals (credit) of Rs. 1.6 billion, the company was able to post a profit of Rs. 8.93 billion.

The company announced a final cash dividend of Rs. 4.25, i.e. 42.50% per share. Earning per share of the company grew to Rs. 20.25 from Rs. 18.01.

DG Khan’s sales increased by 3.05% to Rs. 33.46 billion but due to a greater increase in the cost of sales which saw an increase of 21.13% from the previous year. The gross profits went down by 27% to Rs. 8.81 billion as compared to Rs. 12.12 billion.

Among others, non-core expenses, during the year, increased by more than double the amount on a year-on-year basis, thus resulting in a 34% decline in pre-tax profits.

The administrative expenses saw an increase of 14.38% whereas selling and distribution expenses saw a decrease of 7.70% during the year. The finance cost grew to 40% from the previous year.

Furthermore, the board of directors has recommended the renewal of working capital loan of Rs. 1 billion extended to Nishat Hotels and Properties Limited at the markup rate of 1 month KIBOR plus 0.5%, which is an associated company for a period of one year starting from the date of approval by the shareholders.

It also announced an equity purchasing of 7,596,000 shares of Adamjee Insurance Limited which is an associated company from the open market, from time to time for a period of 3 years.

DGKC’s script at the PSX was closed at Rs. 107.07, up by Rs. 1.72 with a turnover of 4.72 million shares on Wednesday.