DG Khan Cement profit declines by 159%, Pakistan

DG Khan Cement profit declines by 159%, Pakistan
Published: 27 February 2008

DG Khan Cement has registered after tax profit of Rs 329.661m in first half 2007-08 compared to Rs 854.556m in the same period last year, depicting a decline of 159 per cent.

The results of the company are in line with the analysts’ expectations. Lower retention prices, higher per tonne cost and significant upsurge in financial charges were the main reasons behind declining profits. Company’s earnings per share (EPS) also dropped as basic and diluted EPS fell to Rs 1.30 and Rs 1.30 compared to Rs 3.40 and Rs 3.04 respectively in the previous year.

Top line of the company grew by 49
per cent. at Rs 4.82bn as against Rs 3.24bn previously. Financial charges of the company surged notably by almost 2.4 folds to Rs 854m. Nevertheless, higher other income and deferred tax reversal provided due support to the bottom line at Rs 368m and Rs 240m, respectively.