DG Khan reports strong rise in 9MFY12 net profit

DG Khan Cement Company (DGKC) registered a net profit of PKR4.2bn (US$42m) compared to PKR2.1bn in the first nine months of the fiscal year, an increase of 105 per cent.

Revenues increased by nine per cent YoY during the period due to higher price realisations while the cost of sales stayed relatively controlled mainly due to lower coal prices, and were up only one per cent YoY. This enabled the company to record a gross margin of 38 per cent compared to the 33 per cent recorded in the same period of last year.

DG Khan operates two cement plants, the DG Khan cement works with a 2.1Mta cement capacity, and the Chakwal facility, also with a cement capacity of 2.1Mta.