Karachi, August 31, 2023 (PPI-OT): D.G. Khan Cement Company Limited

Earnings: D.G. Khan Cement Company Limited (DGKC) announced its FY23 result. The Company reported an unconsolidated loss of PKR 3.6bn (EPS PKR -8.3), down by x2.2 y/y. On a quarterly basis, the company reported a loss of PKR 5.7bn (EPS: PKR -13.12/share) compared to a loss of PKR 0.6bn (EPS: PKR 1.48/share) in the same period last year.

Dividend/Payout: The Company did not announce any cash dividend this year.

Operating Performance: During 4qFY23 the Company’s net sales marginally inclined to PKR 16.9bn depicting an increase of +15%y/y. On an annual basis, the Company’s net sales increased to PKR 65bn up by +12%y/y. For the quarter, the company’s gross margins plummeted to 11% compared to 18% in the previous quarter. However, average gross margins in FY23 were slightly down to 15% from 18% last year. The company took a whopping tax charge of PKR 5.8bn during the fourth quarter, due to the imposition of a recent retrospective super tax announced in the budget FY24.