DG Khan Cement posts profits

KARACHI: DG Khan Cement (DGKC) on Monday announced its net profits surged by 30 percent to Rs7.855 billion for the year ended June 30, 2015 primarily because of surge in other income and lower production cost.
“Sales revenue of the company surged mainly due to higher dispatches during the period,” Khurram Mohiuddin at Taurus Securities said.
DGKC posted a consolidated net profit of Rs7.855 billion translating into earning per share (EPS) of Rs17.72 in FY15 compared with the profit of Rs6.023 billion and EPS of Rs13.68.
The company also announced a final cash dividend of Rs5.0 per share along with the corporate earnings.
Sales revenue surged 1.7 percent to Rs28.221 billion in FY15 compared with Rs27.748 a year earlier.
Arham Ghous at JS Global Capital said DGKC spiked up 1.2 percent at the bourse after the company announced its yearly financial result beating expectation due to improved gross margin, lower selling and distribution cost, and higher portfolio income.
Nabeel Khursheed at Topline Securities has flagged certain risks for the sector including cartel breakdown leading to price war, higher than anticipated increase in gas tariff, abnormal rise in international coal prices, and delay in commencement of construction projects across the country.
DGKC increased its shareholding in Nishat Paper Products Company Limited from 50 percent to 55 percent through acquisition of 5.0 percent additional shareholding.