DG Khan Cement Co Ltd announced its annual financial results on the Pakistan Stock Exchange (PSX) on 28 August, reporting a Profit After Tax (PAT) of PKR8.7bn (US$307.1m) for FY25, alongside a Dividend Per Share (DPS) of PKR2. The company also delivered its highest-ever quarterly PAT of PKR3.2bn in the 4QFY25.
According to AHL Research, profitability surged from PKR0.5bn in the FY24 to PKR8.7bn in FY25, supported by stronger gross margins and significantly reduced finance costs.
Net revenue for the year reached PKR71.9bn, up nine per cent YoY, driven by higher domestic and export retention prices. However, 4QFY25 revenues dipped 1 per cent YoY, reflecting a 5 per cent fall in domestic dispatches, which declined to 800,000t from 840,000t in the 4QFY24.
Gross margins improved to 25.7 per cent in FY25 from 15.9 per cent in FY24, with 4QFY25 margins climbing to 31.8 per cent, compared with just 7.9 per cent in the same quarter last year.
Finance costs dropped sharply, falling 52 per cent YoY to PKR 3.8bn for FY25, and down 70 per cent YoY in 4QFY25 to PKR0.57bn. The reduction was driven by lower interest rates and reduced borrowings.
The company also benefited from a lower effective tax rate, which stood at 33.3 per cent in FY25 versus 80.9 per cent in FY24. In 4QFY25, the effective tax rate eased further to 25.6 per cent, down from 43.9 per cent in the preceding quarter.
By Abdul Rab Siddiqi, Pakistan
