D.G. Khan Cement Company Limited (DGKC) announced its financial result for 9MFY24 today, posting a profit after tax (PAT) of Rs. 2,235 million (EPS: RS. 5.10), up 6 percent compared to PAT of Rs. 2,112 million (EPS: RS. 4.82) in SPLY. During 3QFY24 earnings stood at Rs. 1,180 million (EPS: RS. 2.69).
Topline during 9MFY24 stood at Rs. 49,051 million, depicting an uptick of 2 percent on a year-on-year (YoY) basis compared to Rs. 48,043 million in SPLY, on the back of higher retention prices, Arif Habib Limited said in its result review of the company.
However, during 3QFY24 net sales declined by 22 percent YoY to settle at Rs. 14,266 million, amid a fall in total dispatches arriving at 1,037k tons (down 34 percent YoY)
Gross margins for 9MFY24 climbed up by 262bps arriving at 18.7 percent owed to higher cement prices in tandem with a fall in coal prices. During 3QFY24 gross margins came at 25.5 percent compared to 19 percent in SPLY. This was primarily attributable to better coal management in 3QFY24.
Selling and Distribution expenses in 9MFY24 surged by 54 percent YoY to settle at Rs. 1,616 million, on the back of elevated freight charges given higher export sales, AHL said. In 3QFY24, selling and distribution expenses stood at Rs. 414 million compared to Rs. 539 million, down by 23 percent due to lower exports for the quarter, standing at 173k tons (down 44 percent).
Other income for 9MFY24 ascended by 34 percent YoY, which is mainly due to higher dividend income from MCB.
Finance costs in 9MFY24 increased by 25 percent YoY to clock in at Rs. 6,073 million on the back of higher interest rates. In 2QFY24, the finance cost arrived at Rs. 1,957 million, displaying a jump of 17 percent YoY.
The company booked effective taxation at 39 percent in 3QFY24 compared to 33 percent in 3QFY23.
