AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: D.G. Khan Cement Company Ltd. (DGKC) reported a significant rise in its third-quarter financial results for fiscal year 2025, with a notable 69% year-on-year increase in earnings. The company posted a net profit after tax of PkR2.0 billion, or earnings per share (EPS) of PkR4.6, compared to PkR1.2 billion, or EPS of PkR2.7, in the same period last year.
The impressive earnings were attributed to improved margins, driven by higher retention prices and a decrease in costs. Revenue for the quarter saw a 27% year-on-year growth, reaching PkR18.1 billion, propelled by a 30% increase in total offtakes to 1.35 million tons and a 6% rise in local retention prices.
Gross margins experienced a slight improvement, rising to 26.0% from 25.5% in the same period last year, aided by the increase in retention prices and a decline in coal prices, particularly in the northern regions.
Operating expenses increased significantly by 80% year-on-year to PkR1.3 billion, primarily due to higher distribution costs linked to a 2.6 times increase in export offtakes.
A substantial 66% year-on-year reduction in finance costs to Pk660 million was recorded, largely due to a 33% decrease in outstanding debt and lower interest rates.
Cumulatively, the nine-month earnings for FY25 amounted to PkR5.5 billion, or EPS of PkR12.6, marking a 2.5 times increase from PkR2.2 billion, or EPS of PkR5.1, in the same period last year.
Analysts at AKD Securities Limited expressed optimism, maintaining a ‘BUY’ stance on DGKC. They anticipate further profitability improvements supported by favorable margins, increased offtakes, enhanced utilization, and easing interest rates. The projected target price for December 2025 is PkR167 per share, suggesting a potential upside of 41%.