DG Khan Cement posts 6% YoY profit growth in 9MFY24

DG Khan Cement Co Ltd (DGKC) announced its financial results for the 9MFY24 and 3QFY24 on the Pakistan Stock Exchange (PSX) website on 19 April. It posted a profit after tax (PAT) of PKR2.23bn (US$8.25m) compared to PKR2.11bn in the same period last year, up by six per cent YoY. However, during the 3QFY24 (January-March 2024), earnings remained consistent at PKR1.18bn. 

A cursory review of results from AHL Research depicts that the topline in the 9MFY24 arrived at PKR49.05bn, showing an uptick of two per cent YoY in contrast to PKR48.04bn on the back of higher retention prices. However, in the 3QFY24 net sales declined by 22 per cent YoY to settle at PKR14.266bn, amid a fall in total dispatches to at 1.037Mt, down 34 per cent YoY.

Selling and distribution expenses in the 9MFY24 surged by 54 per cent YoY to PKR1.61bn due to elevated freight charges, given higher export sales. In the 3QFY24, selling and distribution expenses arrived at PKR414m vis-à-vis PKR539m, down by 23 per cent due to lower exports for the quarter, recording 173,000t (down 44 per cent). Other income for the 9MFY24 increased by 34 per cent YoY, mainly due to higher dividend income from MCB.

Due to a higher interest rate, finance costs in 9MFY24 increased by 25 per cent YoY to PKR6.07bn. In 2QFY24, the finance cost was PKR1.95bn, a jump of 17 per cent YoY due to the above reason.

DG Khan Cement (Nishan Group) booked effective taxation at 39 per cent in 3QFY24 vis-à-vis 33 per cent in 3QFY23.