Pakistan cement producer DK Khan Cement Co announced a 15 per cent YoY rise to PKR8.79bn (US$83.9m) in its profit after tax in FY16 from PKR7.624bn in FY15.
Its sales rose to PKR29.703bn from PKR26.104bn in FY15bn and cost of sale increased PKR17.035bn from PKR16.649bn in the same period. Along with financial results, the company also announced a full and final cash dividend of PKR6.0/share, making the payout to 30 per cent.
The company also announced a brownfield cement capacity expansion of 2.2Mta at its Dera Ghazi Khan site. This follows the on‐going expansion project, which is expected to commence commercial operations by FY18 end. The US$300m Hub expansion project will see the construction of a 9000tpd unit with Denmark-based FLSmidth and Germany's Loesche GmbH supplying equipment. DG Khan expects to complete the project in FY18, entitling the project to a five-year tax holiday. The project is envisaged to provide the company with a strong presence in the southern market and access to sea-route exports.
If the latest announced expansion is commissioned, Pakistan's cement production capacity will surpass the 63Mta mark by end FY21.
