 announced its financial result for 9MFY24 today, posting a profit after tax (PAT) of Rs. 2,235 million.){kind=link}
D.G. Khan Cement Company Limited (DGKC) shared its financial report for the first nine months of the fiscal year 2024 today. They made a profit of Rs. 2,235 million (which means each share earned Rs. 5.10), which is 6 percent higher compared to the same time last year when they earned Rs. 2,112 million (or Rs. 4.82 per share). In the third quarter of the fiscal year 2024, they earned Rs. 1,180 million (or Rs. 2.69 per share).
Their total sales during the first nine months of the fiscal year 2024 were Rs. 49,051 million. This shows a 2 percent increase compared to the same period last year when they made sales of Rs. 48,043 million. Arif Habib Limited, in their review of the company’s results, mentioned that this increase was due to higher prices they could keep for their products.
However, in the third quarter of the fiscal year 2024, net sales went down by 22 percent compared to the same period last year, reaching Rs. 14,266 million. This drop was because the total amount of cement dispatched decreased by 34 percent, reaching 1,037k tons.
DG Khan Cement’s after tax profit increases
Gross margins for the first nine months of the fiscal year 2024 increased by 262 basis points to 18.7 percent. This rise was because of higher prices for cement along with a decrease in coal prices. In the third quarter of the fiscal year 2024, gross margins were 25.5 percent, compared to 19 percent in the same period last year. The improvement was mainly due to better management of coal in the third quarter of the fiscal year 2024.
Selling and distribution expenses for the first nine months of the fiscal year 2024 rose by 54 percent compared to the same period last year, settling at Rs. 1,616 million. This increase was because of higher freight charges due to increased export sales, according to AHL. In the third quarter of the fiscal year 2024, selling and distribution expenses were Rs. 414 million, compared to Rs. 539 million in the same period last year, showing a decrease of 23 percent. This reduction was due to lower exports for the quarter, which stood at 173k tons, down by 44 percent.
Other income for the first nine months of the fiscal year 2024 went up by 34 percent compared to the same period last year. This increase was mainly because of higher dividend income from MCB.
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Finance costs for the first nine months of the fiscal year 2024 increased by 25 percent compared to the same period last year, reaching Rs. 6,073 million. This rise was due to higher interest rates. In the second quarter of the fiscal year 2024, finance costs were Rs. 1,957 million, showing a 17 percent increase compared to the same period last year.
The company’s effective taxation rate in the third quarter of the fiscal year 2024 was 39 percent, compared to 33 percent in the third quarter of the fiscal year 2023.