DG Khan Cement's net profit falls by 47%

DG Khan Cement (DGKC) has announced its unconsolidated financial results for 9MFY19. It reported net profit after tax of PKR2.62bn (US$18.5m), down 47 per cent YoY.

The company's net sales surged by 30 per cent YoY to PKR 30.37bn from PKR 23.37bn during this period on the back of increases in cement prices and volumes (mainly exports), a research house remarked.

Other highlights include a 46 per cent YoY increase in distribution expenses to PKR1bn, reportedly on account of a rise in exports sales, but a 20 per cent YoY decline in other expenses to PKR525m. There was an increase of 611 per cent in finance cost due to the debt financing of the company's new expansion.

DGKC operates three cement plants at Dera Ghazi Khan, Khairpur and Hub, which have a combined capacity of 7.056Mta.