D.G. Khan Cement’s Earnings Surge Amid Increased Offtakes

Karachi: D.G. Khan Cement Company Ltd. (DGKC) reported significant growth in its first-quarter financial results for fiscal year 2026, reflecting a notable increase in earnings and revenue. The company announced earnings of PkR2.1 billion, equating to an earnings per share (EPS) of PkR4.9, marking a 2.7-fold increase compared to the PkR804 million (EPS: PkR1.8) reported in the same period last year.

Despite these gains, the results fell short of market expectations due to lower-than-anticipated margins. Revenue saw a 29% year-on-year increase, reaching PkR19.8 billion, up from PkR15.3 billion in the corresponding period last year. This growth was driven by a 14% increase in total offtakes, amounting to 1.35 million tons.

The company’s gross margins improved to 21.7%, compared to 19.6% in the same period last year. This improvement was attributed to a decline in coal prices and grid tariffs. However, operating expenses rose to PkR1.3 billion, a 13% year-on-year increase, primarily due to higher distribution expenses following an 11% increase in exports.

Finance costs experienced a significant drop of 73% year-on-year, totaling PkR431 million. This decrease was largely due to a 48% reduction in outstanding debt and a decline in interest rates. The effective tax rate for the quarter was 37%, slightly lower than the 39% recorded in the first quarter of fiscal year 2025.

These financial results were released by AKD Securities Limited, offering a comprehensive analysis of D.G. Khan Cement’s performance in the first quarter of fiscal year 2026.