DG Khan sees 17% decline in first-quarter exports, Pakistan

DG Khan Cement reported a lower-than-expected post-tax profit of PKR1.07bn (US$10m) in the first quarter of the current fiscal year, down 26 per cent from the PKR1.44bn reported in the same period of last year.

The decline is mainly being attributed by analysts at Summit Capital to a decline in sales which fell six per cent YoY to 903,000t compared to 964,000t in the same period of last year. Local sales fell one per cent to 621,000t while exports fell by a substantial 17 per cent YoY to 282,000t. As a result, the company posted almost flat revenue growth of PKR5.85bn compared to PKR5.87bn last year.

However, the cost of sales increased by five per cent to PKR3.86bn against PKR3.66bn exerting pressure on gross margins which shrank four basis points to 34 per cent compared to 38 per cent in FY12-13.