DG Khan Cement's profit increased by 13% in 1HFY23-24

DG Khan Cement Co Ltd (DGKC) announced its financial results for the half year ended 2023-24 on 26 February 2024. Its net profit after taxation increased by 13.2 per cent YoY to PKR1.05bn (US$379.2m). The rise in profit can be attributed to higher sales or 17 per cent during these six months ending on 31 December 2023. 

Its net sales increased to PKR34.78bn from PKR29.76bn during this period. It incurred a distribution cost of PKR1.20bn (a 136 per cent rise) against PKR508m and administrative expenses of PKR580m compared to PKR425m in 2QFY22-23. The financial cost jumped by 28 per cent to PKR4.11bn.

According to IMS Research, disrupted shipping through the Red Sea resulted in exports to North America. However, lower coal prices will help lift margins in the future.