DG Khan Cement incurs losses on taxes

DG Khan Cement Co (DGKC) has reported a loss of PKR3.63bn (US$11.8bn) for the year ended 30 June  2023, compared to a profit of PKR2.97bn in the year-ago period, despite a rise in revenue. The company has attributed the loss to higher taxation and increased financial charges. 

The company says its net sales increased by 12 per cent to PKR64.98bn from PKR58.04bn during the 12-month period. It incurred a distribution cost of PKR1.81bn against PKR1.74bn and administrative expenses of PKR879m versus PKR751m in FY23 (a rise of four per cent and 17 per cent, respectively). The finance cost jumped by 88.8 per cent to PKR6.742bn from PKR3.571bn in the previous year. 

Higher taxation and finance costs coupled with selling and administrative expenses have hit the bottom line of cement companies during FY23 (July – June), according to AKD Research. The significant tax expense is due to the imposition of super tax on FY23, attributed Topline Pakistan Research. However, some players have reportedly sustained it.