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WEEKLY
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| DG Khan Cement profit falls 61pc |
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Wednesday, February 27, 2008
KARACHI: DG Khan Cement Company Ltd has announced 1H (Jul-Dec) FY08 results, posting a 61 per cent decline in its profitability.
The company’s earning per share (EPS) stood at Rs1.3 (net profits of Rs330 million) as compared to EPS of Rs3.4 (net profits of Rs855 million) in the corresponding period last year. “The earnings include a deferred tax credit of Rs240 million (per share impact of positive Rs0.95), “ JS Research said.
However, the decline in earnings was primarily because of decreasing cement prices in the country which is on account of excessive supply of the product in the market. Moreover, depreciation costs remained high as their new plant came online in FY07.
The company’s gross profits stood at Rs761 million, declining by 36 per cent, whereas gross profit margins dropped significantly as they stood at 16 per cent as compared to 37 per cent in 1H FY07.
Large amount of loans taken for expansionary purposes caused financial charges for the company to rise sharply by 240 per cent as they stood at Rs854 million from Rs262 million previously. Nevertheless, on the back of higher dividend income, DG Khan posted a massive increase of 48 per cent in other income which stood at Rs368million in 1H FY08 as compared to Rs248 million in 1H FY07.
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ISSN 1563-9479 
