DG Khan Cement Co Ltd (DGKC) reported its financial results for FY23-24 on the Pakistan Stock Exchange website on 16 September. The company posted a profit of PKR542m (US$1.95m) compared to a loss of PKR3.64bn in the previous period. Other income and lower taxation helped to achieve profit during this period.
According to AHL Research, DG Khan's topline during FY23-24 reached PKR66.03bn, an uptick of two per cent YoY in contrast to PKR64.98bn in the previous period, on the back of higher retention prices. Selling and distribution expenses in FY23-24 surged by 43 per cent YoY to settle at PKR2.6bn on the back of elevated freight charges, given higher export sales. Other income for FY23-24 ascended by 30 per cent YoY, mainly due to higher income from MCB Bank.
However, finance costs in FY23-24 increased by 19 per cent YoY to PKR8bn due to a higher interest rate.
The company booked effective taxation at 81 per cent in FY23-24 amid amendments to tax laws, where normal tax is charged on the sale of exports (compared to presumptive tax). During the same period last year, effective taxation arrived at 215 per cent due to the retrospective imposition of a super tax.
