DGKC earns Rs8.38bln in FY16

KARACHI: DG Khan Cement Company Limited on Wednesday reported 6.7 percent increase in its net profit to Rs8.38 billion for the fiscal year of 2015/16, translating into earnings per share (EPS) of Rs19.52 for the period.

A notice issued to the Pakistan Stock Exchange said DGKC earned Rs7.85 billion and announced EPS of Rs17.72 during the last fiscal year.

The company also announced final cash dividend of Rs6/share. 

The result is in-line with market expectations.

Total sales remained Rs31.94 billion during this period, up by 13.2 percent compared with Rs28.22 billion last year. Cost of sales remained at Rs19.51 billion against Rs18.54 billion. Thus, gross profit was declared at Rs12.43 billion against Rs9.67 billion last year. DGKC posted other income of Rs2.36 billion against Rs2.36 billion.

Besides the results, DGKC announced a running finance facility of Rs1.0 billion to its associate company Nishat Hotels and Properties Limited.

Karim Punjani, analyst at Elixir Securities, said DGKC’s announcement of a brown field expansion project of 2.2mnt (at the DG Khan site) validates our view on capacity additions.