DG Khan Cement Co Ltd has reported earnings of PKR2.16bn (US$7.64m) for the first quarter of FY26, reflecting a strong 169 per cent YoY increase, according to BMA Research. However, earnings declined 33 per cent QoQ.
The significant YoY improvement was driven by higher gross margins and lower finance costs, while the QoQ decline resulted from lower margins and a higher effective tax rate. The company did not announce any cash dividend with the results.
DGKC’s revenue for 1QFY26 rose 29 per cent YoY and 18 per cent QoQ to PKR 19.8bn, supported by higher cement dispatches. Local dispatches reached 0.86Mt, up 16 per cent YoY and eight per cent QoQ. Exports increased 11 per cent YoY and two per cent QoQ to 0.49Mt.
The company’s gross margin stood at 21.7 per cent for the quarter, compared to 31.8 per cent in 4QFY25 and 19.6 per cent in 1QFY25. Distribution costs were PKR 872m, showing a seven per cent YoY increase but a seven per cent QoQ decline.
Finance costs fell sharply to PKR431m, down 73 per cent YoY and 25 per cent QoQ, supported by reduced borrowing costs and lower KIBOR rates. Other income stood at PKR1.01bn, down three per cent YoY and 10 per cent QoQ, likely due to reduced dividend income.
By Abdul Rab Siddiqi, Pakistan
