Pakistan: Dewan Cement profits up 61%

Dewan Cement Ltd (DCL) posted a net profit of PKR268m (US$2.55m) for the quarter ended 30 September, a 61.4 per cent increase YoY from the PKR166m registered last year.

Company revenue increased 14 per cent YoY (-18 per cent QoQ) to PKR2.94bn, mainly as a result of increasing dispatches and rising prices following a higher federal excise duty on cement manufacturers. Gross margins remained unchanged from the previous year’s figure of 19 per cent. The company report added that “subpar gross margins are mainly due to less than desirable energy efficiencies of the company’s plant.”

Shareholders were informed in October that the company had received a request from a Chinese investor seeking permission to carry out due diligence of Dewan Cement, which may eventually lead to acquisition of shares in the company.

Dewan Cement has a production capacity of around 2.88Mta, representing 6.1 per cent of the country’s 45.6Mta capacity. The company has two manufacturing units, Pakland Cement and Saadi Cement.