DG Khan Cement Co Ltd (DGKC) announced its financial results for 1HFY24-25 on the Pakistan Stock Exchange website on 19 February. The company reported earnings of PKR3.523bn (US$12.61m), reflecting a 234 per cent YoY increase compared to PKR1.054bn in 1HFY23-24. At the same time, 2QFY24-25 earnings reached PKR2.719bn, marking a 591 per cent YoY increase compared to PKR394m in 2QFY23-24.

According to AHL Research, the DGKC's sales during 1HFY24-25 reached PKR37.0bn, reflecting a six per cent YoY growth from PKR34.8bn in the same period last year, driven by an eight per cent YoY increase in dispatches. In 2QFY24-25, the topline rose to PKR21.7bn, marking a 19 per cent YoY increase from PKR 8.3bn in the same period last year due to a 15 per cent YoY rise in dispatches.

Gross margins for 1HFY24-25 were 22.8 per cent, up from 15.9 per cent in the same period last year, primarily due to higher capacity utilisation. In 2QFY24-25, gross margins also increased by 1238bps YoY to 25.1 per cent, driven by the same factors. Selling and distribution expenses rose by 63 per cent YoY to PKR1956m in 1HFY24-25, mainly due to higher sales volume. In 2QFY24-25, these expenses surged by 64 per cent YoY and 39 per cent quarter over quarter.

Other income was up three per cent YoY to PKR2227m in 1HFY24-25, driven by higher dividend income. In 2QFY24-25, other income decreased 11 per cent YoY but rose 15 per cent quarter over quarter. Finance costs fell 36 per cent YoY to PKR2640m in 1HFY24-25, benefiting from lower interest rates. Due to the same factor, they declined 48 per cent year over year and 34 per cent quarter over quarter in 2QFY24-25.

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The company recorded an effective tax rate of 30 per cent in 2QFY24-25, compared to 40.3 per cent in the same period last year.

by Abdul Rab Siddiqi, Pakistan