DG Khan Cement profit declines 6.3 percent

KARACHI: DG Khan Cement Company (DGKC) has earned a profit of Rs7.853 billion for the year ended June 30, 2017, 6.3 percent down as compared to Rs8.38 billion in the year ended June 30, 2016, a bourse filing said on Tuesday.

The earnings per share (EPS) for the outgoing FY17 clocked in at Rs18.01 as against Rs19.52 during the previous year. The cement manufacturer also announced a final cash dividend of Rs7.5/share.

“Decline in profitability can be attributed to expensive coal inventory, relatively higher power costs and lower-than-expected retention prices,” Kareem Punjani at Elixir Securities said.

The company’s scrip; however, crawled up 0.47 percent at the local bourse. The sales revenue stood at Rs32.475 billion in FY18, up 1.65 percent from Rs31.946 billion during the previous year.

Talking about the last quarter of the fiscal year, Faizan Ahmed in a report issued by JS Global, said decline in earnings during the fourth quarter could be attributed to 11 percent fall in revenues, triggered by 13 percent lower local dispatches, 19 percent decline in exports and weak pricing environment in the North region.

In addition, the board of directors of DG Khan Cement Company approved a renewal of working capital loan of Rs1 billion to its associate company Nishat Hotels Pvt Limited (NHPL) at three-month KIBOR +0.5 percent.