Karachi, D.G. Khan Cement Company Limited (DGKC) today announced a robust set of financial results for the third quarter of fiscal year 2024, significantly exceeding market expectations. The company reported a profit after tax of PKR 1.2 billion, marking a substantial increase from the previous quarter, driven largely by exceptional gross margins.

According to AKD Securities Limited, DGKC's profit after tax reached PKR 1.2 billion for the quarter, equivalent to earnings per share of PKR 2.7, compared to PKR 0.4 billion or PKR 0.9 per share in the prior quarter, representing a nearly threefold increase. This performance was notably higher than consensus forecasts, primarily attributed to improved gross margins which stood at 25.5%, the highest since FY18.

Net sales for the quarter were reported at PKR 14.3 billion, a decline of 22% from PKR 18.3 billion in the previous quarter, reflecting a 24% decrease in sales volume to 1.04 million tons. The decrease in sales volume was a significant factor in the lower total revenue.

Further financial details reveal a reduction in operating expenses by 27% quarter-over-quarter to PKR 722 million, likely due to decreased transportation charges associated with the fall in sales volume. Additionally, other income decreased by 24% quarter-over-quarter but increased by 34% year-over-year to PKR 1.0 billion, boosted by higher dividend income from the company's banking associate, MCB.

Finance costs for the quarter were slightly reduced by 3.5% compared to the previous quarter, totaling PKR 1.96 billion, amid a reduction in borrowing levels and a slight decrease in average KIBOR rates.

Overall, for the first nine months of fiscal year 2024, DGKC’s earnings accumulated to PKR 2.2 billion, with earnings per share at PKR 5.1, representing a 6.2% increase year-over-year from PKR 2.1 billion or PKR 4.8 per share.