DG Khan Cement profit rises on higher prices
Pakistan’s second-largest producer of cement, DG Khan Cement, said its first-quarter net profit rose due to higher prices.
Net income rose to PKR355.5m (US$4.1m) in the three months ended 30 September from PKR46.3m last year, said the company in a statement to the Karachi Stock Exchange. Sales rose from PKR3.7bn to PKR5.3bn.
The company attributed the results to a better price realisation. Cement prices increased 25% to PKR400 for a 50kg bag in the north of the country during the quarter, according to brokerage firm BMA Capital Management.
“We expect the growth momentum to continue going into the second quarter on the back of a further 15-rupee hike in the cement price,” Farid Aliani wrote in the report. “Should the government decide to eliminate the subsidy on electricity another round of price hikes cannot be ruled out going forward.”
The All-Pakistan Cement Manufacturers Association said that domestic sales rose 10.6% to 1.6Mt in August. Exports fell 9.5% to 1.5Mt during the two months ended 31 August while local sales advanced 13.6% to 3.7Mt. We believe domestic consumption will increase eight percent to 33.9 million tons in the year ending June,” Aliani said.
Published under Cement News
