Pakistan cement firms see profits fall

Pakistani cement companies continue to report decreases in profits, largely due rises in the cost of sale and other factors in the 9MFY17-18.
 
DG Khan Cement Co Ltd (DGKC) earned a net profit of PKR4.96bn (US$40.4m) in 9MFY18 compared to PKR6.45bn (US$55.6m) in the corresponding period of the previous financial year, representing a 23 per cent YoY drop. Net sales rose to PKR23.37bn from PKR22.63bn during this period. DGKC incurred a distribution cost of PKR691m against PKR231m in the year-ago period. Administrative expenses stood at PKR455m, considerably higher when compared to PKR159m in 9MFY16-17.
 
Meanwhile, Fecto Cement Ltd (FCL) posted a profit after taxation of PKR329m against PKR607m earned in 9MFY17 – a 45.7 per cent YoY fall. Net sales decreased to PKR3.8bn from PKR4bn during this period. FCL incurred distribution costs of PKR148m against PKR133m a year ago. The administrative expenses stood at PKR196m compared to PKR191m in nine months of last year.
 
Flying Cement Co Ltd (FCCL) reported net profit of PKR5m in 9MFY18 versus PKR113m in same period last year. FCCL's profit fell by 16 per cent. Net sales rose to PKR2bn from PKR1.8bn during this period. FCCL incurred a distribution costs of PKR7.6m against PKR4.4m a year ago. The administrative expenses stood at PKR38m compared to PKR37m in nine months of last year.