DG Khan records 8% increase in profit

Pakistani cement manufacturer DG Khan Cement has released its financial results for the year ended 30 June 2014, announcing an 8% y/y increase in net profit and a final cash dividend of Rs.3.50 per share.

Financial highlights

• Profit: DG Khan posted a net profit of Rs.5.96 billion for the year ended 30 June 2014, an 8% y/y increase compared to Rs.5.5 billion recorded in the same period a year earlier.
• Revenues: Revenues rose by 7% y/y to Rs.26.54 billion as local cement prices increased by 12% y/y to Rs.506 for a 50 kg bag. However, revenues declined 4% q/q to Rs.6.93 million during the April – June 2014 quarter (compared to the January – March quarter) due to a decline in cement dispatches.
• Earnings: Earnings per share (EPS) stood at Rs.13.62 for FY14, increasing from Rs.12.56 registered for the year ended 30 June 2013. On a quarterly basis, DG Khan recorded a 59% q/q increase in earnings to Rs.2 billion during the April – June 2014 quarter (EPS of Rs.4.61) due to improved margins and reduced financial charges.
• Margins: Margins fell by two percentage points to 35% during the year ended 30 June 2014 as a result of increased electricity and gas prices. Despite this, gross margins improved by five percentage points to 42% during the April – June 2014 quarter (compared to the January – March quarter). This was partly attributed to a rise in cement prices and the installation of an 8.4 MW waste heat recovery (WHR) plant at DG Khan’s Khairpur facility, located in Pakistan’s Sindh province.

Edited from various sources by Rosalie Starling

Sources

• The Express Tribune
• Dawn

Read the article online at: https://www.worldcement.com/europe-cis/17092014/dg-khan-records-8-percent-increase-in-profit-493/