DG Khan Cement Reports Profit Surge Amid Retention Price Boost

Karachi: D.G. Khan Cement Company Ltd. (DGKC) reported a significant increase in profitability for the fiscal year 2025 during its corporate briefing on financial results and future outlook. The company achieved a profit of PKR8.7 billion, equivalent to earnings per share (EPS) of 19.80, marking a 16% rise from the previous year’s PKR542 million, which had an EPS of PKR1.24. This growth was attributed to improved margins driven by increased retention prices.

DGKC experienced an increase in kiln operational days, rising by 10% year-over-year to 760 days from the same period last year, which stood at 691 days. Clinker production also saw an improvement, reaching 75% compared to the previous year’s 65%.

The company’s utilization rate for FY25 was at 79%, significantly higher than the industry’s average of 55% and an improvement from the 72% utilization rate recorded in FY24.

DGKC’s clinker capacity is spread across its facilities in DG Khan, Khairpur, and Hub, with daily capacities of 6,700, 6,700, and 9,000 tons, respectively, culminating in a combined total capacity of 22,400 tons per day.

The company faces challenges due to border closures with Afghanistan, which have disrupted Afghan coal supplies. This has necessitated a shift towards imported coal, which now accounts for approximately 94-95% of their coal needs, with local suppliers contributing only 5-6%.

Management noted that the current prices for imported coal range from approximately US$95 to US$107 per ton, impacting procurement strategies.