DG Khan underperforms in the first nine months of FY14

Pakistani cement manufacturer DG Khan Cement (DGKC) has announced its financial results for the first nine months of the current fiscal year. The company recorded a profit of Rs.3.94 billion during the reporting period, a 7% y/y decline compared to Rs.4.24 billion in the same period a year earlier. Earnings per share fell slightly to Rs.9 from Rs.9.68 in the corresponding period in FY13. The company’s gross margins fell by 5% to 33% during the first nine months of FY14 due to inflationary pressures, such as higher electricity, fuel and gas costs.

During the third quarter of the current fiscal year, earnings stood at Rs.1.27 billion, a 4% y/y decrease compared to the corresponding quarter a year earlier. The figure additionally represented a 20% q/q decline compared to 2Q14. The fall was attributed to an increase in production costs. Revenues totalled Rs.7.2 billion in 3Q14, a 14% y/y increase compared to 3Q12, as a result of a 4% y/y rise in total off-take to 1.03 million t and a 13% y/y improvement in local cement prices to Rs.510 per 50 kg bag. Margins of the company declined by 4% to 30% during the reporting quarter as a result of lower gas supplies and increased production costs.

Edited from various sources by Rosalie Starling

Read the article online at: https://www.worldcement.com/asia-pacific-rim/30042014/dg_khan_underperforms_in_the_first_nine_months_of_fy14_110/