Hifsa Raja

DG Khan Cement Company Limited’s net sales climbed 32% to Rs43.3 billion in the first nine months of the previous fiscal year 2021-22 (9MFY22) from Rs32.8 billion over the corresponding period of FY21.

The gross profit, showing 32% growth, stood at Rs7.9 billion in 9MFY22 compared to Rs5.9 billion over the same period of FY21. The before-tax profit increased 35% to Rs4.9 billion in 9MFY22 from Rs3.6 billion in 9MFY21. The profit-after-tax rose 27% to Rs3.7 billion in 9MFY22 from Rs2.9 billion in 9MFY21. The earnings per share (EPS) stood at Rs8.26 in 9MFY22 compared to Rs6.5 over the same period in FY21, showing a growth of 27%, reports WealthPK.

As of June 30, 2021, directors, their spouse(s), and minor children owned 4.29% of the company’s total shares. Associated companies held 31.77% of the shares; NIT and ICP 0.42%; banks, development financial institutions, non-banking financial institutions 5.03%; insurance companies 6.31%; modarabas and  mutual funds 6.56%; general public (local) 19.47%; general public (foreign) 1.07% and ‘others’ 12.59%.

Performance in 2020-21

During the fiscal year 2020-21, the company generated revenue of Rs45 billion against Rs38 billion in 2019-20, registering an increase of 19%.  The gross profit for FY21 was Rs8.1 billion compared to a loss of Rs1.6 billion in FY20, registering a massive growth of 409% in profit. The loss-before-tax for FY21 was Rs2.9 billion compared to the loss of Rs4.6 billion in FY20, showing a decrease in the loss by 37%.
Similarly, the profit-after-tax for FY21 was Rs3.7 billion as compared to a loss of Rs2.15 million in FY21, showing a decrease in the loss by a whopping 272%.

The earnings per share (EPS) was Rs3.67 in 2019, but then dipped to minus Rs4.93 in 2020. However, the EPS bounced back and jumped to Rs8.49 in 2021, before dropping to Rs6.78 in 2022.

Profit or loss over the years

Profitability – gross profit ratio and profit before and after tax – remained healthy in 2017 and 2018, but decreased in 2019. The company suffered before and after-tax losses in 2020. However, the gross profit ratio and profit before and after tax increased decently in 2021.

DG Khan Cement Company is a public-limited entity by shares incorporated in Pakistan in 1978 under the now repealed Companies Act, 1913. The company is principally engaged in production and sale of clinker, ordinary Portland and sulphate resistant cement.

Credit : Independent News Pakistan-WealthPk