DG Khan Cement Reports a Loss of Rs. 847 Million

DG Khan Cement (DGKC) has announced its financial results for the half-year ended Jul-Dec FY19-20.

DGKC reported an unconsolidated loss of Rs. 847 million during the period as compared to a profit of Rs. 1.32 billion recorded in the same period last year. This was due to an increase in finance cost, selling and distribution expenses and an increase in the cost of sales.

The company has also booked a tax credit during the half-year, resulting in a positive tax amount of Rs. 874.57 million, which somehow minimized the losses.

Being one of the top players in the industry, DG Cement failed to make it big this time. Despite nearly 5.67% growth in revenues, DG Khan Cement watched its half year's earnings drop in the red zone. The sales of the company were recorded at Rs. 20.88 billion, up by 5.67 % as compared to Rs. 19.76 billion in the corresponding period. This was reflection of higher expected dispatches growth (domestic/exports( However, lower domestic/export prices restricted the impact.

Cost of sales were reported at Rs. 19.88 billion, up by 19.80% as compared to Rs 16.58 billion recorded in the same period last year. This took the gross profit to Rs. 1.02 billion, down by 68% from Rs. 3.18 billion.

On the other hand, distribution and admin costs surged by 53.15% to Rs. 1 billion and 14.80% to Rs. 357 million respectively. They were increased due to a jump in export volumes.

Finance cost surged by a whopping 82.85% to Rs. 2.45 billion as compared with Rs. 1.34 billion in the same period last year which was due to higher borrowing and increase in interest rates.

The company reported a loss per share of Rs. 1.93 as compared with earnings per share of Rs. 3.98 in the corresponding period.

DGKC's scrip at PSX was closed at Rs. 69.32, up by 4.52% or Rs. 3.01, with a turnover of 18.24 million shares traded on Thursday.

Source: Pro Pakistani