DGKC and ACPL Anticipate Mixed 1QFY25 Results Amid Varying Market Dynamics

Karachi: DG Khan Cement Company Ltd (DGKC) and Attock Cement Pakistan Limited (ACPL) are poised to reveal their financial outcomes for the first quarter of FY25, exhibiting varied performances influenced by market retention and volume dynamics. DGKC is expected to report stable year-over-year earnings, while ACPL is set to show a decrease due to last year’s exceptional gains. Both companies continue to navigate market pressures, particularly in southern regions.

According to JS Global, DGKC’s board convened today to review the 1QFY25 financial results. Analysts project DGKC’s earnings to stand at Rs 660 million, equivalent to an earnings per share (EPS) of Rs 1.5, mirroring last year’s figures. This stability follows a sequential improvement over the previous quarter, which was marred by low margins due to reduced plant utilization affecting fixed cost coverage. Expected revenue for the quarter is pegged at Rs 16.4 billion, consistent with the prior year. Despite a decline in local dispatches, higher retention prices are likely to bolster revenue, with gross margins estimated at 17%, a slight dip from the previous year. A notable 13% reduction in finance costs is also anticipated, attributed to lower borrowing rates.

ACPL, operating primarily in the challenging southern market, is scheduled to discuss its 1QFY25 results tomorrow. The expected earnings of Rs 236 million represent a significant 84% drop year-over-year, largely due to the absence of a one-time gain from a stake sale in its Iraq subsidiary recorded last year. Adjusted for this one-off item, earnings reflect a modest 3% improvement. Revenue forecasts indicate a robust 14% year-on-year increase to Rs 7.6 billion, supported by stable gross margins.

The post DGKC and ACPL Anticipate Mixed 1QFY25 Results Amid Varying Market Dynamics appeared first on Pakistan Business News.