DG Khan Cement 1QFY19 earnings fall by 85%

DG Khan Cement Company Ltd (DGKC) of Pakistan announced its financial results for 1QFY19 with unconsolidated earnings falling at PKR418m (US$3.1m), down by a substantial 85 per cent YoY, as compared to PKR2.84bn reported in the same period last year, says a filling of company to Pakistan Stock Exchange on 25 October.

Company net sales increased by nine per cent to PKR8.18bn YoY, likely due to incremental sales from its south plant, which are still below expected levels from managements perspective. Gross profits of the company dropped by 61 per cent YoY, largely due to rise in input prices and more so due to the inclusion of substantial depreciation expense pertaining to the recently inaugurated Hub expansion project.

The company incurred higher administrative expenses of PKR170m compared to PKR149m and lower selling and distribution expenses of PKR177m as compared to PKR233m in corresponding period last year.

The company has a cement capacity of 7.11Mta in three plants.